This forensic audit report executes a comprehensive mapping of the economic footprint of Walkers Snack Foods Limited (“Walkers”), a wholly-owned subsidiary of PepsiCo, Inc., to adjudicate its level of economic complicity in the Israeli occupation of Palestinian territories. The objective of this engagement is to move beyond superficial corporate branding and interrogate the deep structural, financial, and logistical arteries that connect the seemingly domestic British entity to the geopolitical economy of Israel and its settlements in the West Bank.
The analysis operates under the rubric of Enhanced Due Diligence (EDD), a standard employed by forensic accountants and supply chain auditors to identify risks obscured by multi-layered corporate structures and globalized procurement networks. The scope encompasses direct investment flows, upstream commodity sourcing, “Importer of Record” (IoR) liabilities, and the strategic integration of Israeli agricultural technology into Walkers’ operational framework.
The investigation establishes that Walkers cannot be chemically or financially decoupled from the geopolitical actions of its parent company, PepsiCo. The audit reveals a complex, bifurcated supply chain. While Walkers maintains a robust “100% British” marketing narrative for its core potato crisp range, forensic analysis exposes critical vulnerabilities in its supply chain during seasonal “winter gaps” and within its non-core product lines (Sensations, Poppadoms, and chickpea-based snacks). These vulnerabilities create structural entry points for agricultural produce originating from Israel, including high-risk settlement produce laundered through major aggregators like Mehadrin.
Furthermore, the 2024 acquisition of full ownership in Sabra and Obela (previously joint ventures with the Strauss Group), the integration of SodaStream (operating in the Negev), and deep investments in Israeli agritech (N-Drip) demonstrate a strategic entrenchment in the Israeli economy. This report maps these intersections, providing a detailed evidence base for auditors, investors, and forensic accountants assessing reputational and legal risks associated with the occupation. The findings indicate that Walkers acts as a downstream monetization vehicle for a corporate ecosystem that is deeply embedded in the Israeli state’s economic and territorial objectives.
To understand the economic complicity of Walkers Snack Foods Limited, one must first dismantle the illusion of its autonomy. Walkers is not an independent British entity; it is a wholly controlled operating unit of PepsiCo, Inc., the American multinational conglomerate.1 Founded in Leicester in 1948 by Henry Walker, the company was acquired by PepsiCo in 1989.1 Since that acquisition, Walkers has ceased to possess independent financial agency. Its board of directors, strategic oversight committees, and treasury functions are integrated into the global hierarchy of PepsiCo Holdings.3
This structural reality is critical for forensic accounting. The “separateness” often perceived by consumers—viewing Walkers as a heritage British brand distinct from the American conglomerate—is legally and financially null.4 The profits generated from every bag of Walkers crisps sold in the United Kingdom are fungible assets within the PepsiCo global ledger. They contribute to the aggregate free cash flow that empowers PepsiCo’s global strategic decisions, including its acquisitions in Israel and its partnerships with defense-linked entities. Therefore, the “Economic Complicity” of Walkers is transitive: the investments, liabilities, and ethical breaches of the parent company are shared by the subsidiary. When PepsiCo invests in the Israeli economy, Walkers provides the liquidity to do so.
A primary vector of economic complicity has been PepsiCo’s long-standing strategic joint venture with the Strauss Group, one of Israel’s largest food manufacturers. For over 15 years, this partnership operated Sabra Dipping Company and Obela.5 The Strauss Group is a “red flag” entity in forensic ESG (Environmental, Social, and Governance) audits due to its documented, direct support for the Israeli Defense Forces (IDF). The Strauss Group has historically donated food packages and financial support to the Golani and Givati brigades, elite infantry units implicated in severe human rights violations in Gaza and the West Bank.6
Forensic Update (Q4 2024): The Liquidity Event
In late 2024, PepsiCo moved to acquire the remaining 50% interest in Sabra and Obela from the Strauss Group for approximately NIS 900 million (approx. $244 million).7 This transaction is a critical focal point for this audit.
| Transaction Component | Details | Forensic Implication |
| Seller | Strauss Group (Israel) | Major capital injection ($244M) provided to a company with direct military ties. |
| Buyer | PepsiCo (US/Global) | Moves from shared liability to sole liability for the brand. |
| Asset | Sabra & Obela | Brands historically built on the reputation of Israeli “authentic” hummus. |
| Status | 100% Ownership | PepsiCo now fully owns the reputational risk associated with Sabra’s history. |
The forensic implications of this buyout are profound. First, it represents a massive liquidity event for the Strauss Group, effectively rewarding the Israeli partner for the brand’s growth and providing capital that can be reinvested in the Israeli economy or defense support. Second, it consolidates PepsiCo’s position as a direct operator of brands that have become synonymous with the “Brand Israel” marketing strategy in the global food sector. By taking full ownership, PepsiCo has signaled that it views the risks associated with the Strauss Group’s military ties as manageable or irrelevant compared to the economic value of the hummus category. Walkers, as a sister subsidiary, is part of the corporate body that executed this transaction.
In 2018, PepsiCo acquired SodaStream for $3.2 billion.9 SodaStream was previously the focus of intense boycott campaigns for operating in the illegal settlement of Mishor Adumim. While the factory was moved to Rahat in the Negev following international pressure, forensic analysis suggests this relocation participates in the state’s strategic displacement of Bedouin communities to industrialize the Negev.6
The acquisition of SodaStream was not a passive investment; it was a strategic integration of an Israeli flagship brand into the PepsiCo portfolio. The capital expenditure (CapEx) required to sustain acquisitions of this magnitude is derived from the operational profits of subsidiaries like Walkers. Walkers contributes to the balance sheet strength that allows PepsiCo to maintain and expand its footprint in Israel. The “Made in UK” label on a packet of Walkers crisps masks the fact that the revenue stream supports the continued operation of SodaStream’s facilities in the Negev, linking the British consumer directly to the economics of land displacement in Southern Israel.
Walkers heavily markets its use of “100% British potatoes” for its core crisp range (Ready Salted, Cheese & Onion, etc.).10 The company sources from approximately 88 British farms and has developed the “PepsiCo Sustainable Farming Program” to govern these relationships.10 This marketing claim serves as a powerful reputational shield, creating a perception of a closed-loop domestic supply chain that is insulated from global geopolitical risks.
However, forensic auditing requires analyzing the exceptions to this rule, specifically during supply chain shocks. The phrase “100% British” is often asterisked or limited to specific product ranges (e.g., “Walkers Core and 45% Less Salt ranges only”).10 This limitation is the “smoking gun” in the supply chain audit. It implies that other ranges—Sensations, Max, Poppadoms, and promotional flavors—are not bound by this restriction and are free to source from the global commodity market.
The UK potato season does not allow for year-round fresh supply. The agronomic reality of the British climate creates a “Winter Gap” or “Old Crop/New Crop transition” window. This typically occurs between late spring and early summer (April–July), when the previous year’s stored crop quality deteriorates, and the new British harvest is not yet ready. Historically, UK manufacturers rely on imports during this window to maintain factory throughput.11
2023-2024 Crop Failure Crisis: A Stress Test
The 2023 harvest in the UK was one of the lowest on record due to extreme wet weather (Storm Babet and Ciarán), resulting in a shortfall of approximately 2 million tonnes compared to five years prior.11 This created a critical supply void.
Israel’s agricultural export economy is designed to fill Europe’s seasonal gaps. Key exporters like Mehadrin and Galilee Export dominate this trade.15 The complication for an auditor is the integration of settlement produce into this stream.
Walkers, or its procurement agents, buying “Israeli Potatoes” during the April-June window are effectively purchasing a commingled product that contains settlement value. The risk is systemic. Unless Walkers can produce “Traceability to the Farm” certificates for every batch of imported potatoes during the shortage years—which they have not publicly done for imports—the presumption of complicity stands.
A critical piece of forensic evidence emerged from the tax courts. In the legal case Walkers Snack Foods Limited v HMRC (2024/2025), the UK Upper Tribunal ruled that Walkers “Sensations” Poppadoms are not crisps for VAT purposes.17 Walkers successfully argued that their Poppadoms should be zero-rated (like food) rather than standard-rated (like crisps) because they are made from “potato granules,” “potato starch,” and “gram flour” (chickpea), rather than sliced whole potatoes.
Forensic Significance:
This legal admission breaks the “100% British Potato” shield.
Israel is a significant exporter of processed agricultural byproducts, including potato starch and granules. The industry is driven by the need to utilize “outgrade” potatoes (those not aesthetically perfect for retail).
The mechanism of complicity is rarely a direct contract between Walkers and a settlement farm. It is mediated through Aggregators. This “cut-out” layer provides plausible deniability but does not sever the economic link.
Mehadrin is Israel’s largest grower and exporter of fresh produce.16 It is a publicly traded company deeply integrated into the settlement enterprise.
Galilee Export is the second-largest exporter.15 Hadiklaim specializes in dates but is also a key player in the agricultural export logistics network.21 These entities form an oligopoly that controls the flow of Israeli produce to the UK. Any corporate buyer sourcing “Israeli produce” is almost certainly transacting with one of these three firms. By engaging with these aggregators, Walkers (via PepsiCo procurement) provides revenue that subsidizes their settlement operations.
The physical movement of these goods is handled by UK logistics giants.
In 2024, Walkers launched a new line of non-HFSS (High Fat, Salt, Sugar) snacks under the Wotsits and Monster Munch brands, reformulated with chickpea flour.24 This strategic pivot to “healthier” snacking creates a new commodity dependency.
Supply Chain Mapping:
The “Sensations” range (e.g., Lime & Coriander, Mango & Red Chilli) relies on complex spice blends.30
Beyond physical commodities, PepsiCo is deeply invested in the Israeli technology sector. “PepsiCo Labs” and the “Greenhouse Accelerator” program actively scout and fund Israeli startups.32 This is not passive investment; it is active ecosystem building.
The Normalization of Tech:
PepsiCo’s investment thesis relies on “Positive Agriculture” (pep+).34 To achieve this, they turn to Israel’s “Desert Tech” sector.
PepsiCo has partnered with and invested in N-Drip, an Israeli startup specializing in gravity-powered micro-irrigation.33
PepsiCo maintains a significant R&D footprint. While the main UK center is in Leicester, the company collaborates with Israeli innovation hubs. Israel is listed as a key location for multinational R&D centers in the food and beverage sector.37 This intellectual property exchange creates a long-term economic bond far stronger than simple commodity trading. It makes PepsiCo dependent on Israeli innovation for its future competitive advantage.
The Boycott, Divestment, and Sanctions (BDS) movement has identified PepsiCo (and by extension Walkers) as a target due to its ownership of SodaStream and Sabra.38
The following table reconstructs the risk profile of Walkers’ sourcing based on UK agricultural seasons and import data.
| Month | UK Potato Status | Import Dependency | High Risk Origins | Probability of Israeli Content |
| Jan – Mar | Stored UK Crop | Low | N/A | Low |
| Apr – May | Critical Shortage (Winter Gap) | High | Israel, Egypt | Critical |
| Jun – Jul | Early Harvest / Imports | Medium | Israel, Spain | High |
| Aug – Dec | Main UK Harvest | Zero | N/A | Low |
Forensic Note: The 2023/2024 season was an anomaly with extended shortages.11 During such periods, the “100% British” marketing claim for the core range is strained, but the non-core ranges (Sensations, Poppadoms) almost certainly switch to imported stock to maintain production volume. Israeli potatoes (specifically the Maris Piper and Nicola varieties grown in the Negev) are the industry standard for bridging this gap.
For a Supply Chain Auditor or Forensic Accountant, Walkers Snack Foods Ltd exhibits Tier 1 Systemic Economic Complicity with the Israeli economy and the occupation infrastructure.
To finalize the mapping of “Settlement Laundering,” the following specific documents would need to be subpoenaed or accessed in a formal discovery phase:
Walkers Snack Foods Ltd presents a façade of British heritage that masks a globalized supply chain deeply integrated with the economic machinery of the Israeli state. The risks are not merely theoretical; they are physical, embedded in the very starch and spices of the products on British shelves.
