WHEREAS, we believe in full disclosure of Keurig Dr. Pepper’s (“KDP”) lobbying activities and expenditures to assess whether its lobbying is consistent with KDP’s expressed goals and in stockholders’ best interests.

RESOLVED, the stockholders of KDP request the preparation of a report, updated annually, disclosing the following information:

1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications; 

2. Payments by KDP used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient; 

3. KDP’s membership in and payments to any tax-exempt organization that writes and endorses model legislation;

4. Description of the decision-making process and oversight by management and the Board for making payments described in sections 2 and 3 above.

For purposes of this proposal, a “grassroots lobbying communication” is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. “Indirect lobbying” is lobbying engaged in by a trade association or other organization of which KDP is a member.

Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels. 

The report shall be presented to the Audit Committee or other relevant oversight committees and posted on KDP’s website.  

Supporting Statement:  We encourage transparency in KDP’s use of funds to lobby. In October 2019, KDP registered for federal lobbying. Federal lobbying does not include state lobbying, where KDP also lobbies but disclosure is uneven or absent. For example, KDP spent $436,288 on lobbying in New York from 2011 – 2018. And KDP has drawn attention for spending millions against a soda taxes initiative Washington.[1]

KDP serves on the board of the American Beverage Association (ABA), which spent over $19 million on lobbying from 2010 – 2018. ABA’s lobbying against local and state soda taxes has been compared to tobacco lobbying against smoke-free ordinances.[2]Previously, Dr. Pepper Snapple had disclosed $12.6 million in payments to ABA for direct political advocacy in 2016 and 2017. But unlike peers Coca-Cola, Kraft Heinz, Mondelez and Pepsico, KDP does not disclose memberships in, or payments to, trade associations, or the amounts used for lobbying on its website.

We are concerned that KDP’s lack of lobbying and trade association disclosure presents reputational risk when its lobbying contradicts company public positions. For example, KDP touts its commitment to helping people consume less sugar, yet it helps fund ABA’s opposition to soda tax initiatives. KDP uses the Global Reporting Initiative for sustainability reporting, yet currently fails to report “any differences between its lobbying positions and any stated policies, goals, or other public positions” under Standard 415, giving further indication that KDP’s disclosures are currently inadequate.

[1]https://www.thestranger.com/slog/2018/09/18/32524177/soda-companies-give-5-million-more-to-initiative-that-blocks-soda-taxes

[2]https://www.npr.org/sections/thesalt/2018/11/05/664435761/big-soda-and-the-ballot-soda-industry-takes-cues-from-tobacco-to-combat-taxes

,