Coca-Cola and PepsiCo Adjust DEI Policies: A New Era of Inclusion?

In a surprising turn of events, two of the world's most iconic beverage companies, Coca-Cola (KO) and PepsiCo (PEP), have announced adjustments to their Diversity, Equity, and Inclusion (DEI) policies following President Donald Trump's executive order. This move has sparked a conversation about the future of DEI in the corporate world and the potential impacts on these companies' long-term financial performance and market reputation.



The Trump Executive Order and Its Impact

President Trump's executive order, signed in early 2025, requires federal contractors to adhere to the prohibition of DEI programs. This order has forced companies like Coca-Cola and PepsiCo, which are major government contractors, to reevaluate their DEI strategies. 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."