Pepsi 2015 Annual Report Download - page 36

Table of Contents
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to require our suppliers or other third parties to do so; the failure to achieve our goals of reducing sodium,
added sugars and saturated fat in certain products and of growing our portfolio of product choices; the failure
to achieve our other sustainability goals or to be perceived as appropriately addressing matters of social
responsibility; health concerns (whether or not valid) about our products or particular ingredients or substances
in, or attributes of, our products, including concerns regarding whether certain of our products contribute to
obesity; the imposition or proposed imposition of new or increased taxes, labeling requirements or other
limitations on, or pertaining to, the sale, display or advertising of our products; any failure to comply, or
perception of a failure to comply, with our policies and goals, including those regarding advertising to children
and reducing calorie consumption from sugar-sweetened beverages; our research and development efforts;
our environmental impact, including use of agricultural materials, packaging, water, energy use and waste
management or any failure to achieve our goals with respect to reducing our impact on the environment; the
practices of our employees, agents, customers, distributors, suppliers, bottlers, joint venture partners or other
third parties with respect to any of the foregoing, actual or perceived; consumer perception of our advertising
campaigns or marketing programs; consumer perception of our use of social media; or our responses to any
of the foregoing or negative publicity as a result of any of the foregoing.
In addition, we operate globally, which requires us to comply with numerous local regulations, including,
without limitation, anti-corruption laws, competition laws and tax laws and regulations of the jurisdictions
in which our products are made, manufactured, distributed or sold. In the event that our employees engage
in improper activities, we may be subject to enforcement actions, litigation, loss of sales or other consequences,
which may cause us to suffer damage to our reputation in the United States or abroad. Failure to comply with
local laws and regulations, to maintain an effective system of internal controls or to provide accurate and
timely financial information could also hurt our reputation. In addition, water is a limited resource in many
parts of the world and demand for water continues to rise. Our reputation could be damaged if we or others
in our industry do not act, or are perceived not to act, responsibly with respect to water use.
Further, the popularity of social media and other consumer-oriented technologies has increased the speed
and accessibility of information dissemination. As a result, negative or inaccurate posts or comments about
us, our products, policies, practices or advertising campaigns and marketing programs, our use of social
media or of posts or other information disseminated by us or our employees, agents, customers, suppliers,
bottlers, distributors, joint venture partners or other third parties, consumer perception of any of the foregoing,
or failure by us to respond effectively to any of the foregoing, may also generate adverse publicity (whether
or not valid) that could damage our reputation.
Damage to our reputation or brand image or loss of consumer confidence in our products for any of these or
other reasons could result in decreased demand for our products and could adversely affect our business,
financial condition or results of operations, as well as require additional resources to rebuild our reputation.
Failure to successfully complete or integrate acquisitions and joint ventures into our existing operations,
or to complete or manage divestitures or refranchisings, could adversely affect our business, financial
condition or results of operations.
We regularly review our portfolio of businesses and evaluate potential acquisitions, joint ventures,
divestitures, refranchisings and other strategic transactions. Potential issues associated with these activities
could include, among other things: our ability to realize the full extent of the expected returns, benefits, cost
savings or synergies as a result of a transaction, within the anticipated time frame, or at all; receipt of necessary
consents, clearances and approvals in connection with a transaction; and diversion of management’s attention
from day-to-day operations.
With respect to acquisitions, the following factors also pose potential risks: our ability to successfully combine
our businesses with the business of the acquired company, including integrating the acquired company’s