PepsiCo Inc. Canadian Depositary Receipt (PEP)

Profile

https://www.pepsico.com

PepsiCo Inc. Canadian Depositary Receipt is a Canadian Depositary Receipt (CDR) that provides Canadian investors with exposure to PepsiCo, Inc., a global leader in food, snack, and beverage industries. This CDR represents fractional ownership of PepsiCo ordinary shares at a ratio of 1/2, with a nominal value of approximately 0.1111 USD, enabling access at a lower entry price, often around $20 CAD per unit. Traded in Canadian dollars on a Canadian exchange, it features a built-in notional currency hedge that adjusts the ratio based on USD/CAD fluctuations, minimizing foreign exchange risk and aligning returns primarily with the underlying stock's performance. PepsiCo operates through segments like Frito-Lay North America (snacks), Quaker Foods North America (cereals), Pepsi Beverages North America (beverages), and international divisions covering Latin America, Europe, Africa, Middle East, South Asia, and Asia-Pacific, serving diverse markets with brands such as Pepsi, Gatorade, Lay's, and Quaker. Dividends from underlying shares are passed through in CAD, proportional to holdings. This structure enhances accessibility to a blue-chip multinational for Canadian portfolios without direct foreign exchange handling.