PepsiCo, one of America’s most recognizable corporate giants, is preparing for a high-stakes meeting this week with civil rights leader Rev. Al Sharpton after the company moved to roll back key diversity, equity, and inclusion (DEI) policies—a decision that could put it in the crosshairs of a growing consumer backlash.
The meeting comes on the heels of an April 4 letter from Sharpton to PepsiCo CEO Ramon Laguarta, in which he warned the company to reverse course or face a nationwide boycott.
Sharpton, representing the National Action Network, said he intends to press PepsiCo’s leadership on whether they’re abandoning long-standing commitments to equal opportunity in employment, supplier contracts, and minority representation in management.
At the center of the controversy is a February internal memo in which PepsiCo informed employees that it would no longer set representation targets for minorities in leadership roles or for its supplier diversity programs. It’s a sharp pivot for a company that, in 2020, made a very public commitment to invest in racial equity amid widespread civil unrest and corporate pledges to support underrepresented communities.
But this isn’t just a PepsiCo story—it’s part of a broader trend. Since President Trump returned to office in January, a growing number of major U.S. corporations have begun unwinding or pausing their DEI commitments. Walmart, Target, and other major players have already scaled back similar initiatives under increasing legal scrutiny and pressure from shareholders and consumers.
The Trump administration has also made its stance clear: federal agencies are prohibited from maintaining DEI programs, and schools or institutions that do not comply risk losing federal funding. The move is part of a larger rollback of identity-based policy initiatives, with critics arguing that DEI efforts have morphed into political litmus tests and discriminatory hiring schemes.
Sharpton, however, sees economic leverage as the key to accountability. In January, he organized a “buy-cott” at Costco—urging supporters to patronize the retailer for maintaining its DEI standards in contrast to competitors that backtracked. Now, he’s threatening to flip the script on PepsiCo if the company doesn’t clarify or reverse its new direction.
“This is the only viable tool that I see at this time,” Sharpton told the AP. “That’s why we’ve rewarded those that stood with us.”
PepsiCo has yet to issue a public comment on the matter, but the outcome of this meeting may determine whether it faces a strategic course correction—or a full-blown consumer revolt.
