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PepsiCo (PEP) CEO Ramon Laguarta sits down with Yahoo Finance Executive Editor Brian Sozzi at the World Economic Forum in Davos, Switzerland, to discuss the impact of US President Donald Trump's return to the White House.
With the president threatening tariffs on all imports into the US, Laguarta says, "Of course," Pepsi could be impacted, but "to a very small extent because we are a company that is local for local."
The CEO explains, "We're mainly an agriculture company, and we source most of our crops from the local markets where we service consumers ... We have some parts of our business that have been exposed to [the] international movement of raw materials. It's a small part of our business." He adds, "We've done a lot of work on becoming more resilient, more local, having more supply chains that can stand different disruptions that may happen around the world."
Amid worries about Trump fueling a trade war, Laguarta says, "I am hopeful that the current administration will help us close some of the big wars that we have today in the world," specifically in the Middle East and in Ukraine, both of which the CEO says impact PepsiCo's business.
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Click here for more of Yahoo Finance's coverage from the World Economic Forum in Davos.
This post was written by Naomi Buchanan.