Coca-Cola, PepsiCo Adjust DEI Policies Following Trump Executive Order: Report

Coca-Cola Co. KO and PepsiCo Inc. PEP, two major government contractors, are revising their diversity, equity, and inclusion strategies in light of President Donald Trump's executive order.

This order requires federal contractors to adhere to the prohibition of DEI programs, becoming a key consideration for businesses working within government-funded environments.

Coca-Cola is expected to adhere to the administration’s mandate, which will affect its beverage services on military bases and other government properties, reported Bloomberg.

The move comes after Trump ordered federal agencies to dismantle DEI programs and urged private companies to end what he labeled as "illegal DEI discrimination and preferences."

Some of the other prominent corporations that have taken similar decision regarding DEI include, Meta Platforms Inc. META, Amazon.com Inc. AMZN, Walmart Inc WMT, and Target Corp TGT.

Going a step further, Google parent Alphabet Inc. GOOG has taken down a statement from its SEC filings regarding its obligation to DEI.

Meanwhile, retail giant Costco Wholesale Corp.COST bucked the trend as the company’s shareholders reaffirmed their backing for its current DEI initiatives with unanimous support.

Coca-Cola reported fourth-quarter sales growth of 6% year-on-year to $11.5 billion and an adjusted EPS of $0.55, both above the consensus estimates.

The revenue increase included a 5% climb in concentrate sales and a 9% growth in price/mix.

PepsiCo on the other hand, reported worse-than-expected fourth-quarter revenue of $27.78 billion. Adjusted EPS of $1.96, beat the consensus estimate of $1.94.

Price Action: KO and PEP shares traded higher by 0.45% and 0.46% at $69.83 and $145.27 respectively at last check Friday.

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