Trade Practices

PBG competes vigorously, fairly, and with strong independent business judgment in running our business. We also comply with laws governing trade practices and competition. The countries in which PBG operates generally have laws and regulations, usually referred to as “antitrust” laws in the U.S. and “competition” laws in other countries, intended to promote free-market competition and protect consumers and competitors against anti-competitive behavior. These laws and regulations also ensure the existence of a level playing field, allowing businesses to compete fairly on the basis of price, value, quality, and service. All PBG employees and officers are expected to observe – at all times and without exception – both the letter and the spirit of the antitrust or competition laws and this policy. Violations of the laws can result in severe penalties against PBG and individuals involved in such violations, including fines and criminal sanctions.

Competitors

PBG sets its own prices, discounts, terms of sale, and promotional payments independently in light of costs, the need to increase shareholder value and competitive market conditions. Any agreement or understanding whether written or oral, formal or informal, express or implied – between competitors to raise, lower, or stabilize prices is against Company policy.

You should not discuss prices, costs, promotional payments, or terms of sale with a competitor. If a competitor tries to engage you in discussions about pricing, you should politely terminate the conversation. When you are bidding on business, never discuss the bid with a competitor or have any agreement or understanding about the bid process. You should not exchange price lists directly with competitors. Be sure that any competitive price lists that you obtain are published or publicly available through the trade.

Be particularly careful when attending a management meeting or a trade association event where competitors may be. Casual conversation can be easily misunderstood or misinterpreted. If you are ever in a questionable situation with a competitor (e.g., a competitor attempts to engage you in conversation regarding the pricing for a particular customer or bid process), terminate the conversation immediately and call the Law Department.

Customers

PBG will independently determine whether or not to sell to a particular customer, and any conditions of sale, based on its business needs and marketplace conditions. PBG may discuss and suggest retail prices to its customers, but customers always retain the ability to set their own retail prices. In determining wholesale prices, discounts, and promotional payments for different customers, PBG will treat all customers fairly and in accordance with applicable laws.

Suppliers

PBG is free to choose its suppliers and to refuse to do business with any particular supplier. PBG’s decisions, however, must be made independently without an agreement or understanding with a competitor or another supplier.

For more information about the antitrust and competition laws with respect to customers, competitors, or suppliers, contact the Law Department.

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