PepsiCo Inc. and Microsoft Corp. announced a five-year partnership that establishes Microsoft as a preferred cloud provider to accelerate PepsiCo’s infrastructure, ERP, and data estate consolidation and modernization.

As part of the agreement, PepsiCo will roll out Microsoft 365 and Microsoft Teams to all of its 270,000 employees worldwide. In addition, Microsoft Azure will provide PepsiCo with greater agility and the ability to derive new insights from its data estate to fuel product innovations, customer intimacy and sustainability goals.

“As a global leader in convenient food and beverages, our commitment to the timely delivery of PepsiCo products has never been more important,” said PepsiCo CIO, Seth Cohen. “Through our partnership with Microsoft, we aim to improve service delivery capabilities to meet rising demand for essential goods while driving new innovations to make our operations and workforce stronger and more resilient for the future.” 

“Our partnership with PepsiCo applies Azure and AI capabilities to the ever-changing supply chain and retail landscape in new and exciting ways. By migrating PepsiCo’s global data estate and SAP landscapes to Azure, we’ll be able to help PepsiCo drive efficiencies from farmer to consumer,” said Deb Cupp, Microsoft CVP Enterprise Commercial Business. “We’re also pleased to deliver Microsoft 365 to PepsiCo’s associates worldwide as part of this partnership. Mobile communication and collaboration for PepsiCo’s workforce will be one of the keys to realizing the value Microsoft brings.”

This partnership is expected to fuel PepsiCo’s operational goals and aggressive innovation plans by leveraging agile cloud capabilities while providing Microsoft the opportunity to expand its relationship with a leading global provider of consumer-packaged goods.

Key aspects of this partnership include:

1. Cloud and AI Technology Integration: Microsoft will provide PepsiCo with its Azure cloud platform and AI tools, which PepsiCo plans to use to gain better insights into consumer preferences, optimize supply chain operations, and improve customer experiences.
2. Sustainability Efforts: PepsiCo aims to use Microsoft’s technology to achieve its sustainability goals, such as reducing carbon emissions, improving water management, and enhancing overall resource efficiency.
3. Employee Productivity and Collaboration: The partnership will also focus on enhancing productivity and collaboration among PepsiCo’s employees through Microsoft 365 and Teams, supporting remote and hybrid work environments.

This collaboration reflects the broader trend of digital transformation in the food and beverage industry, as companies look to leverage technology to enhance operational efficiency, sustainability, and customer engagement.

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