Why It Matters

PepsiCo faces a regulatory perfect storm that explains its substantial Q3 2025 lobbying push. It confronts expanding state-level SNAP restrictions targeting sugary beverages—a critical revenue stream—while defending against FTC antitrust allegations over pricing practices. Agricultural input costs are surging amid the worst farm economy in 40 years, steel and aluminum tariffs are escalating, and federal regulators are advancing front-of-package labeling rules requiring costly packaging redesigns.

The legislative landscape compounds these pressures: the 2025 farm bill reauthorization could codify SNAP restrictions into law, while Congress debates trucking regulations affecting PepsiCo’s supply chain. Without strategic legislative intervention, the company faces margin compression from multiple directions.

By the Numbers

PepsiCo Inc. reported $850,000 in Q3 2025 in-house lobbying spending, managed by its five-person internal team. The seasoned lobbying player has filed 77 disclosure reports since 2003 totaling over $71 million in expenditures.

PepsiCo’s team includes four lobbyists with prior congressional experience—predominantly with Republican members—led by Sarah Ann Towles, who spent nearly 12 years as Legislative Director for Senator Jeff Flake and the Senate Foreign Relations Committee. The company recently hired Chelsee A.M. Woodey in April 2025, bringing specialized food and agriculture expertise from prior roles at Kraft Heinz Co. and industry associations.

PepsiCo supplements in-house capacity with external firms Monument Advocacy, Fierce Government Relations, and Invariant LLC for specialized coverage on agriculture, trade, tax, and sustainability issues.

The Agenda

PepsiCo Inc. is lobbying on issues directly tied to its core business operations. The company is targeting the Farm, Food and National Security Act of 2024 (H.R. 8467), which governs commodity programs critical to PepsiCo’s agricultural supply chain. Notably, PepsiCo is lobbying against SNAP purchasing restrictions that would prohibit soft drinks and candy from the program.

On trade, the company is lobbying against steel and aluminum import tariffs and advocating for USMCA protections. Transportation logistics dominate another pillar, including the DRIVE-Safe Act (H.R. 1374) and SHIP IT Act (H.R. 471).

The company is also engaging on artificial intelligence regulation, packaging standards, and tax reform—representing a departure from its traditional focus on taxation, food regulation, and agriculture.

Broader Context

Congress is advancing multiple initiatives threatening PepsiCo Inc.’s business model. The Healthy SNAP Act would ban soft drinks and candy from SNAP purchases, while Louisiana recently approved a state waiver restricting soda purchases. The FDA is advancing front-of-package labeling requirements requiring prominent sugar and sodium warnings.

U.S. agriculture faces its worst financial outlook in 40 years, with soaring input costs pressuring PepsiCo’s commodity supply chain. Steel and aluminum tariffs have reached 50%, directly impacting packaging costs.

Though the FTC dismissed its price discrimination lawsuit in May 2025, Democratic senators pressed the company on pricing practices, and a new merchant class action lawsuit was filed in August 2025.

Between The Lines

Congressional activity directly targets PepsiCo’s lobbying priorities. The Healthy SNAP Act of 2025 (H.R. 479 / S.561) would prohibit SNAP benefits from purchasing soft drinks and candy—a direct revenue threat. The TRUTH in Labeling Act (H.R. 4725) would mandate prominent front-of-package warning labels, requiring costly packaging redesigns.

Multiple Democratic members have intensified scrutiny of PepsiCo’s pricing practices. Rep. Jerry Nadler (D-NY) and Senators Cory Booker (D-NJ) and Elizabeth Warren (D-MA) publicly supported FTC investigations into alleged price discrimination.

Competitive Landscape

PepsiCo operates within a densely populated lobbying ecosystem. Former partners including Kraft Heinz Co. and industry associations remain competitors on food safety and agricultural policy. The American Beverage Association doubled lobbying expenditures to $1.7 million in early 2025—the highest in 15 years—specifically combating SNAP restrictions threatening industry revenue streams.

Public health advocates actively oppose PepsiCo’s positions on SNAP eligibility and labeling, having successfully pushed Louisiana and other states toward soda bans.

The Bottom Line

PepsiCo Inc. spent $850,000 on federal lobbying in Q3 2025, deploying a five-person team with deep Republican congressional ties. The company faces mounting pressure: antitrust scrutiny over pricing practices, expanding state-level SNAP restrictions on sugary beverages, tariff threats, and proposed labeling requirements. PepsiCo’s defensive lobbying strategy reflects an unusually challenging regulatory environment threatening significant revenue headwinds.