The new program was developed to offer help to the National Urban League, UnidosUS, and local nonprofit organizations in the country to help address issues of transmission, unemployment, and the shortage of resources that are needed more than ever by Black and Latino U.S. communities disproportionately affected by COVID-19.

Chief Executive Officer Steven Williams of PepsiCo Foods North America stated that the pandemic put a focus once more on the deep-rooted health and economic inequalities that were long faced by people of color. He acknowledged that these disparities were already pre-existing factors in society, but he promised that the major corporation would continue to help the communities in the coming months.

Allocation of resources

The initiative to help feed families of vulnerable groups will provide $1 million to local philanthropic organizations like the National Urban League and UnidosIS Esperanza/Hope Fund to help increase medical care and attention through testing and treatment, expand access to support from the government, and provide education and employment for relief.

What is left would be allotted for recovery after the pandemic. PepsiCo would give the $5 million to nonprofit partners to support the specialized needs of the Black and Latino communities, which included testing and screening, nutritious food, healthcare services, education and employment, economic and child care assistance, and housing.

The foundation is also giving a grant worth $100,000 to the Farmworkers Pandemic Relief Fund for assistance to the equally vulnerable farmworkers in the United States who continued to support the food supply even during the pandemic.

Majority of the support will go to areas in the nation with the greatest population of Black and Latino residents like Baltimore, Los Angeles, Milwaukee, New Orleans, and other cities.

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Higher infection and mortality rates

Chief Executive Officer Kirk Tanner of PepsiCo Beverages North America said that Black and Latino communities were being disproportionately affected by the pandemic. The minority groups have both seen higher rates of hospitalization, death, and economic hardships when compared to others.

Tanner continued by saying the pandemic required "a collective effort". He said that the initiative would find support in the company and their partners easily. 

The company's investment was done in response to the surge of unemployment and infection rates found among Black and Latino communities in America. People of color account for a higher percentage of the total confirmed cases than they do the national population. 

Meanwhile, the mortality rate was twice as much as that of the Caucasian people. This was largely attributed to a combination of social and economic factors, particularly since most of the people who could afford to get themselves treated were whites.

On the ground level, it looks worse. In Milwaukee, Black populations account for only 26% of the total population, but they make up for 70% of the deaths by coronavirus in the area.

Similarly, in the Bay area, Latino residents comprise 21% of the population, but make up 37% of the COVID-19 cases.

Last month, a survey was conducted showing that most essential service workers were people of color, and so plans of reopening the economy might put them at greater risk.