Core Insights - PepsiCo, in collaboration with Griffith Foods and Milhão, has launched a direct farmer incentive pilot program aimed at promoting regenerative agriculture in Brazil's Cerrado region, which is crucial for global food security [1][2][3] Group 1: Program Details - The pilot program employs a hybrid "Payment for Practice and Payment for Outcomes" model, compensating farmers for adopting regenerative practices such as composting and reducing chemical fertilizer use [3][5] - The initiative will initially cover 7,000 acres, with plans to expand to 30,000 acres, representing PepsiCo's total corn sourcing volume in the region by year three, with a total investment of $1 million [3][5] - The program aims to address financial risks faced by farmers transitioning to sustainable practices, thereby improving soil health and reducing greenhouse gas emissions [3][4] Group 2: Strategic Importance - The Cerrado region is responsible for over 60% of Brazil's soybeans and significant corn production, making it a vital agricultural area facing threats from deforestation and climate stress [2][5] - This initiative is positioned as a potential blueprint for industry-wide transformation, encouraging collaboration among competitors to drive systemic change in agriculture [4][5] Group 3: Long-term Goals - PepsiCo aims to promote regenerative agriculture practices across 10 million acres by 2030, contributing to climate resilience and sustainable food systems [5][6]

Core Insights - PepsiCo, in collaboration with the Alliance of Bioversity International and CIAT, announced a significant update to the Climate Resilience Platform (CRP), aimed at helping agricultural stakeholders address climate change impacts [2][3] - The updated CRP 2.0 enhances capabilities and accessibility, promoting regenerative agriculture practices and building a more resilient agricultural supply chain [6][8] Development of the Climate Resilience Platform - Originally developed in 2023, the CRP translates climate research into actionable insights for agricultural stakeholders, enabling them to anticipate yield risks and implement targeted interventions [4] - The platform has been recognized for its transformative potential in food and agriculture, distinguishing itself from proprietary tools that may impose high consultancy fees [4] Funding and Collaboration - The September 2025 release of CRP 2.0 was co-funded by the Foundation for Food & Agriculture Research (FFAR), which contributed $1 million to enhance the platform's impact [6][8] - New organizations, including Olam Agri and Bonsucro, have joined the platform, contributing funding and data to support climate adaptation and agricultural innovation [10] Enhanced Features of CRP 2.0 - CRP 2.0 introduces quantification of climate risk exposure and opportunities in business terms, including investment requirements and projected yield improvements [9] - The platform has expanded to include two new crops and six new countries, enhancing its reach and fostering collaboration among organizations [9] Industry Impact and Future Goals - The collaboration aims to empower stakeholders across the food and agriculture system to make informed decisions and strengthen supply chains [7][11] - The initiative reflects ongoing efforts in climate resilience and regenerative agriculture, with a focus on creating long-term value for supply chains and securing livelihoods for farmers in vulnerable regions [11]

Core Insights - PepsiCo launched its first-ever Global Farmer Awards to honor outstanding farmers, farming families, and advisors from its global supply chain, emphasizing the importance of agriculture in its business model [1][3][4] - The Perry Family Farm from Alberta, Canada, was awarded Farmer of the Year, recognized for its leadership in regenerative agriculture and long-standing partnership with PepsiCo [2][5] - The awards align with PepsiCo's pep+ Positive Agriculture agenda, which aims to implement regenerative practices across 10 million acres by 2030, having already achieved over 3.5 million acres as of 2024 [6] Event Highlights - The awards ceremony took place at PepsiCo's headquarters in Purchase, NY, gathering nearly 60 farmers and advisors from 19 countries [1][3] - Finalists were recognized across six categories: Sustainability, Next-Gen Farming, Leadership & Advisory, Heritage & Growth, Quality, and Farmer of the Year, showcasing a diverse representation of farmers [4] - The event included a broader agenda with plenary sessions, a Taste & Tell Expo, and panels where farmers shared regenerative practices with PepsiCo executives [9][10] Strategic Initiatives - PepsiCo is investing in farmer training, technology, and collaborations to enhance soil health, biodiversity, and watershed improvements [6][7] - The Climate Resilience Platform was launched as a digital tool to provide farmers with insights on climate conditions and potential impacts on yields [7] - The STEP Up for Agriculture initiative, developed in collaboration with Unilever and other retailers, aims to strengthen farmer support organizations and promote regenerative practices [7]

Core Insights - JDE Peet's celebrates ten years of its Common Grounds farmer programmes and urges the coffee industry to adopt the Regenerative Agriculture Coffee Roadmap to secure the future of coffee amidst climate challenges [1][2] Group 1: Company Initiatives - The Common Grounds farmer programmes have reached nearly one million farmers over the past decade, enhancing their resilience against climate risks [2][3] - The programmes focus on regenerative agriculture, supporting farmer prosperity, and creating thriving coffee communities through a data-driven approach [3][7] - Since 2015, the programmes have implemented regenerative practices on 50% of the farms covered, contributing to 83.2% responsibly sourced green coffee globally [7] Group 2: Industry Impact - The Regenerative Coffee Roadmap aims to boost incomes for over three million smallholder farmers, increase coffee exports by 30%, and reduce greenhouse gas emissions by 3.5 million tons of CO₂e annually [6] - Approximately 12.5 million coffee farmers globally, many of whom are smallholders, often lack resources for development and resilience [7] - JDE Peet's sustainability strategy is built on three pillars: Responsible Sourcing, Minimising Footprint, and Connecting People [7]

Financial Data and Key Metrics Changes - Fiscal 2025 results did not meet expectations, with organic net sales and adjusted operating profit falling short, despite exceeding cost savings and free cash flow conversion goals [4][5][10] - Delivered savings totaling 5% of cost of goods, which is at the top of the industry, helping to offset input cost inflation [5][6] - Strong free cash conversion in fiscal 2025 allowed the company to return $2.5 billion to shareholders through dividends and share repurchases [6] Business Line Data and Key Metrics Changes - The North America yogurt business was divested, and White Bridge Pet Brands was added to the North America Pet segment, focusing on categories with stronger long-term growth opportunities [6][8] - The company has turned over 30% of its net sales base since fiscal 2018, contributing more than a point of growth to projected long-term category growth exposure [6][10] Market Data and Key Metrics Changes - In Q1 fiscal 2026, there was a low single-digit decline in organic net sales and a double-digit decline in adjusted operating profit and adjusted diluted earnings per share [10][11] - The company expects declines to continue in Q2 before improving in the second half and returning to growth in Q4 [11] Company Strategy and Development Direction - The Accelerate strategy remains the framework for driving long-term growth and returns for shareholders, focusing on restoring volume-driven organic sales growth in fiscal 2026 [4][8] - Three priorities for fiscal 2026 include returning the North America Retail segment to volume growth, accelerating growth in North America Pet, and driving efficiencies to reinvest in growth [8][9] - The Remarkable Experiences Framework will assess brands across five dimensions to identify strengths and opportunities for improvement [9] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a challenging macro-economic backdrop and value-seeking consumer behavior impacting top-line results [5][7] - The company is focused on balancing reinvestment for long-term growth with cost savings to fund that growth [8][11] - Confidence in the ability to deliver fiscal 2026 goals is emphasized, supported by strong brands and industry-leading capabilities [11] Other Important Information - The company reported preliminary voting results indicating that all management proposals were approved, while both shareholder proposals failed to gain majority support [24][25] Q&A Session Summary Question: Approach to supporting healthy diets and providing nutrient information - The company has a long history of providing access to important nutrition and has consistently evolved its portfolio to improve nutritional characteristics [28] Question: Thoughts on transformational M&A activity in the food industry - The company maintains an always-on M&A capability and will continue to look for opportunities to upgrade the growth profile through acquisitions and divestitures [30] Question: Global transformation initiative and expected savings - The global transformation initiative is designed to enhance processes and free up resources for reinvestment, with savings expected to be utilized for growth investments [31]

Core Insights - The program directly engages with farmers in Alabama, Georgia, and Florida to support agricultural practices that protect and improve natural resources while also reducing and removing greenhouse gases [1] Group 1 - The initiative focuses on sustainable agriculture practices [1] - The program aims to enhance natural resource management [1] - The effort includes reducing greenhouse gas emissions [1]

Core Insights - Replenish Nutrients is advancing discussions to develop a pelletized version of its proprietary fertilizer and exploring licensing agreements, which could significantly expand market reach and generate attractive cash flows without major capital investments [2][4] - The company reaffirmed its CA$7 million ERA grant for the DeBolt facility, contingent upon securing remaining financing, highlighting the project's importance and reducing risk for the next expansion phase [3] - Replenish reported improved Q2 revenues, stronger gross profit margins, and reduced operating costs, driven by higher volumes and favorable pricing, with the Beiseker facility expected to reach a full capacity of 2,000 tonnes per month, representing an annual revenue run-rate of CA$13–16 million with approximately 30% gross margins [4][5] Strategic Developments - Licensing and partnership opportunities are being pursued to accelerate distribution and broaden market applications [8] - The ongoing production ramp-up at Beiseker is expected to drive cash flow and profitability [8] - Strategic funding support through the ERA grant for the DeBolt project is in place, which is crucial for the company's growth initiatives [8] Market Position - Replenish Nutrients is positioned as a rising leader in sustainable farming solutions, benefiting from the global momentum of regenerative agriculture [6] - The company is entering the second half of 2025 from a position of strength, with multiple catalysts converging, including improved financial performance and a promising pipeline of initiatives [5]

Core Viewpoint - PepsiCo has made significant progress in its sustainability and nutrition goals as part of its pep+ (PepsiCo Positive) initiative, demonstrating a commitment to embedding sustainability into its business operations [1][3][4]. Group 1: Sustainability Goals - The company has spread the adoption of regenerative agriculture, restorative, or protective practices across 3.5 million acres, equivalent to more than two million American football fields [2][5]. - PepsiCo sourced 89% of its global electricity needs for company-owned operations from renewable sources, reducing Scope 1 and 2 greenhouse gas emissions by 18% compared to its 2022 baseline [12]. - The company replenished approximately 24 billion liters of water back into local watersheds, equivalent to 9,600 Olympic-sized pools, and has helped over 96 million people gain access to safe water since 2006 [5][12]. Group 2: Nutrition Achievements - PepsiCo achieved two nutritional goals ahead of schedule, with 67% of its beverage portfolio containing fewer than 100 calories from added sugars per 12 oz. serving and 77% of its convenient foods portfolio volume not exceeding 1.3 milligrams of sodium per calorie [5][12]. Group 3: Future Goals - The company aims to drive regenerative agriculture practices across 10 million acres by 2030, roughly the size of Switzerland [6]. - PepsiCo's pep+ initiative is described as an ongoing transformation that integrates sustainability into all aspects of the business, aiming for long-term resilience and value creation [3][9].

Core Viewpoint - Mondelēz International, Inc. is launching a new wave of impact-first investments through its Sustainable Futures Impact Investment platform, focusing on scalable solutions that address climate, community, and circularity, aligning with its sustainability strategy and Vision 2030 ambitions [1][4]. Investment Approach - The company employs a three-pronged investment strategy consisting of direct investments, fund investments, and technical assistance to scale promising solutions that generate measurable impact [2][4]. Direct Investments - New additions to the Sustainable Futures portfolio include investments in regenerative agriculture, inclusive financing, and circular packaging through innovative technology [4]. Fund Investments - Mondelēz International supports impact funds that align with its goal of catalyzing positive change across various geographies [3][4]. Technical Assistance - The company provides capacity-building support to early-stage ventures, helping validate their technologies through larger-scale pilots and scientific approaches [3][4]. Specific Investments - eAgronom is an ag-tech company aiding farmers in improving soil health and reducing carbon emissions, with over 1 million hectares under sustainable practices [5]. - ZIRO is a fintech startup providing affordable inventory financing to small merchants, aiming to reach approximately 100,000 merchants in three years [5]. - Pack2Earth is focused on replacing 60,000 metric tons of plastic packaging with compostable materials by 2028, part of a coalition supporting the Circulate Capital's Ocean Fund [5]. Impact Metrics - In 2024, investments in the Circulate Capital Ocean Fund contributed to circulating or avoiding over 7,600 tonnes of plastic, reducing more than 10,700 tonnes of GHG emissions, and creating over 34,900 tonnes in recycling infrastructure capacity across Southeast Asia and India [5]. Strategic Importance - Sustainability is a key pillar of Mondelēz International's growth strategy, with investments aimed at addressing challenges and creating long-term business resilience [6].

Core Insights - PepsiCo has made significant advancements in sustainability through its pep+ initiative, focusing on regenerative agriculture, water stewardship, sustainable packaging, and climate change since its launch in September 2021 [1][2]. Sustainability Goals - The company is refining its sustainability goals to enhance business resilience and focus on areas with the most positive impact, including an increased target for regenerative agriculture from 7 million acres to 10 million acres by 2030, with 3.5 million acres already achieved as of 2024 [5][6]. - PepsiCo aims to achieve net zero emissions by 2050, aligning its Scope 1, 2, and 3 targets with a 1.5°C trajectory, reflecting updated scientific guidance [6][10]. - The company is updating its packaging goals to prioritize key markets and reduce the use of virgin plastic, while also sunsetting its reuse target but continuing efforts to design packaging that is reusable, recyclable, or compostable [7][8]. Water Management - PepsiCo has exceeded its previous water-use efficiency goals, achieving a 25% improvement in operational water-use efficiency in high-risk watersheds and a 15% improvement in agricultural water-use efficiency ahead of schedule. The company maintains its goal to become net water positive by 2030 [9][23]. Transparency and Reporting - The company emphasizes transparency in its sustainability journey, committing to detailed reporting on progress in its 2024 ESG Summary, which will include both successes and challenges faced [10][5].