Pepsico’s $7 Million Donation in Communities of Color for COVID-19 Relief: Paying for a Health Halo to Hide the Devil’s Fork?
Xavier Morales, Ph.D.
Executive Director, Praxis Project
When I read that Pepsico launched a national $7 million initiative to help communities of color amid COVID-19, I felt frustrated. Yes, communities of color need assistance as we continue to bear the health and economic brunt of this pandemic. But this donation is an investment in Pepsico’s bottom line—not our communities—to make it look like they care, a form of corporate healthwashing. In reality, this sum is paltry in comparison to the costs to deal with health problems associated with their sugary drink portfolio, and their products are implicated in the underlying conditions that have increased COVID-19’s lethality in communities color. If they really cared, they would stop their predatory advertising in communities of color and stop blocking our work to pass local soda taxes that make meaningful community investments to improve underlying conditions and health.
Instead, Pepsico seems to be seeking kudos for this donation that amounts to less than one half of one percent of their $1.49 Billion U.S. advertising budget. It’s shameful considering that they intentionally target communities of color, especially young people, for the marketing of their sugary drinks, one of the largest drivers of the underlying health conditions that increase the lethality of this virus.
I live in Berkeley, CA, where in 2014 we became the first municipality in the country to pass a 1 cent/ounce soda tax on sugary drinks distributed in our city. We raise approximately $1.5 million per year for our population of 110,000. Oakland passed their soda tax in 2016 and raises approximately $11 million per year to invest in their communities. Seeing the magnitude of these revenues that are addressing health equity, it isn’t surprising that Pepsico would seek positive press for this shamefully small donation to communities of color as their sugary drinks have been linked to the four major underlying conditions that increase the lethality of the COVID-19 virus, including: hypertension, obesity, type 2 diabetes, and cardiovascular disease.
Maybe this is the cost for them to get a good night’s sleep as they sell a product that is increasing the health and economic impact of the pandemic in communities of color. More likely, as more cities pass soda taxes, with San Francisco and Seattle generating approximately $22 million and Philadelphia generating $77 million, it’s a pre-emptive marketing strategy to improve their brand image and make it harder for the next community to pass a soda tax.
We have volumes of public health research showing how while millions suffer from these diseases, communities of color, including American Indians, Alaskan Natives, Latino, African American, and Asian Americans are hardest hit. Soda companies know marketing their products in communities of color drives up their profits, and there are even industry strategies that identify youth of color as trendsetters that can influence white youth, making targeted marketing a key profit strategy. But it’s already a strategy that’s been deadly for the communities I work with, and COVID-19 makes it even more so. We know the virus attacks people with underlying conditions that are caused by the overconsumption of sugary drinks.
If Pepsico was really interested in helping impacted communities of color, they would stop participating in and stop funding efforts to block the passage of excise taxes on sugary drinks, which are designed to invest these revenues back into communities experiencing disproportionate health disparities. If they really cared about communities of color, stopping their predatory marketing in our communities would go a long way. We also need Pepsico to stop efforts that “shakedown” legislatures to protect their profits. In fact, while Pepisco shamelessly promotes this donation, they aggressively spend on legislative contributions and lobbying designed to block health legislation that seeks to address the overconsumption of sugary drinks.
As COVID-19 rips through our communities, we must connect all of the underlying dots that contribute to unnecessary sickness and death. On the surface, sugary drinks and COVID-19 have little connection. But when we pull back the veil, we see once again, Pepsico and their sugary drink industry brethren putting profits over people. A one-time donation of $7 million is a drop in the bucket for Pepsico and can be interpreted as part of a long-term strategy to continue to ensure future profits. COVID-19 shows us how deeply, corporate policy and profits relate to our health. We’ve shown from Berkeley to Boulder to Philadelphia that communities have the power to take on even big corporations, to put the health of many ahead of making a few rich people even wealthier, and reinvest in ways that benefit all residents. It’s time for industry to stop blocking local soda taxes that put our communities’ health first.