Is Pepsi Stock Halal?

Is Pepsi Stock Halal?

Key Points

  • After examining Pepsi’s source of revenue, the ratio of interest expense to total operating expense, and ESG impact we are uncomfortable investing in Pepsi from a Halal perspective.

Company Overview

PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. 

PepsiCo’s business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.

How much of Pepsi’s revenue comes from haram?

While the majority of Pepsi’s products are halal, Pepsi recently partnered with Mountain Dew and started selling Alcoholic beverages. 

Practical Islamic finance concludes

It’s unclear how much of Pepsi’s revenue comes from alcoholic beverages although we would not be surprised if this portion grew with time since Pepsi is relatively new in this space. This recent disposition of Pepsi with regards to alcoholic beverages, while not conclusively material, is cause for concern.

Does Pepsi rely on interest to operate?

Recent Quarter ended 3/19/2022Fiscal Year ended 12/25/2021Fiscal Year ended 12/25/2020
Interest Expense2401,8631,128
Total Operating Expense682231,23728,495
Interest Expense / Total Operating Expense3.52%5.96%3.96%

*Numbers in millions, of U.S. dollars 

Practical Islamic finance concludes:

Riba is used but not relied upon in Pepsi’s operations.

What is Pepsi’s Environmental, Social, and Governance (ESG) impact?


Globally, as of 2020, nearly 87 percent of Pepsi’s direct-crop volume has been verified as sustainable, including 100 percent of the volume sourced from 28 countries. Pepsi is aiming to achieve net-zero emissions by 2040.


Pepsi has a Glassdoor rating of 3.9 out of 5.0. Glassdoor is a trusted website where current and former employees can review and rate their companies.


No notable governance highlights. 

Practical Islamic finance concludes:

Pepsi has a net positive ESG impact. 

Comfort Rating

From Pepsi’s business, financial, and ESG reviews, Practical Islamic Finance rates Pepsi stock as

Uncomfortable to invest in from a Halal perspective.


Their product line includes alcohol-based beverages which are haram in Islam.

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10Q19th March 2022

10K Dec 2021

Glassdoor Rating

Pepsi ESG Policy

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