PepsiCo Faces Controversy Over Advertising Strategy Amid Ukraine-Russia Conflict

PepsiCo's advertising strategy in Ukraine has come under scrutiny due to restrictions imposed on mentioning the war or expressing support for the Ukrainian army. This move has raised concerns about the company's positioning amidst the ongoing Ukraine-Russia conflict.

Restrictive Advertising Guidelines

According to Yahoo, the advertising guidelines issued by PepsiCo prohibit any mention of war, combat actions, aggression, military personnel, or the Armed Forces of Ukraine. Furthermore, the Odessa Journal adds that expressing support for Ukraine or the Ukrainian army is strictly prohibited. These restrictions aim to avoid negative connotations that may create a sense of "danger."

B4Ukraine, an organization monitoring the presence of international businesses in Russia, highlighted PepsiCo's advertising strategy. They referenced a brief the company submitted when searching for a new advertising and PR agency in Ukraine. B4Ukraine reached out to Pepsi offices in both Ukraine and the U.S. for comment but has yet to receive a response.

Operating in Russia

Despite the controversy in Ukraine, PepsiCo continues its operations in the Russian market. The company pays taxes and contributes to the Russian budget, with a reported payment of $115 million, according to the National Agency on Corruption Prevention (NAZK). Additionally, PepsiCo has a considerable workforce of 20,000 employees and 40,000 agricultural workers in Russia.

Although the formal sale of Pepsi Cola has ceased on Russian shelves, the product remains accessible through so-called "parallel import" channels. This finding raises questions about the effectiveness of measures taken to discontinue the product's availability in Russia.

Ukrainian Allegations

In September 2023, PepsiCo was added to Ukraine's National Agency on Corruption Prevention (NACP) list of international "war sponsors." The NACP stated that PepsiCo had promised to halt beverage production in Russia after the full-scale war began but failed to follow through. Moreover, it was noted that Lay's chips, also produced by PepsiCo, have been discovered in Russian soldiers' food rations.

B4Ukraine's attempt to gather further information from officials at PepsiCo has thus far remained unanswered. It remains to be seen whether the company will address the concerns raised by B4Ukraine and the allegations made by the NACP.

Photo: PR Newswire