PRICING SUPPLEMENT NUMBER 7                     Filed Under Rule
(To Prospectus dated January 11, 1995)          424(b)(2) and 424(c)
CUSIP 71345L CS-5                               File No. 33-57181


                              $25,000,000

                              PEPSICO, INC.


                    Step-Up Notes Due April 1, 2002
                     Interest Payable Semiannually
                        _______________________


Underwriter:             Smith Barney Inc.

Initial Offering Price:  100.00%

Underwriter's Discount:  0.00%

Currency:                U. S. dollars

Date of Issue:           March 31, 1995

Issuance form:           Book entry;  the Step-Up Notes Due April 1,
                         2002 will be issued in minimum denominations of
                         $5,000 and thereafter in $1,000 increments.

Scheduled Maturity Date: April 1, 2002

Interest Rates:          March 31, 1995 - March 31, 1996:         7.50%
                         April 1, 1996 - March 31, 1997:          7.70%
                         April 1, 1997 - March 31, 1998:          7.90%
                         April 1, 1998 - March 31, 1999:          8.10%
                         April 1, 1999 - March 31, 2000:          8.30%
                         April 1, 2000 - March 31, 2001:          8.50%
                         April 1, 2001 - March 31, 2002:          8.70%


Day count basis:         30/360


Interest Accrual Date:  March 31, 1995 or the most recent date for
which interest has been paid or provided for, as the case may be.
Interest will accrue from each Interest Accrual Date to but excluding
the next succeeding Interest Payment Date.

Interest Payment Dates:  Semiannually on each October 1 and April 1,
commencing October 1, 1995 and ending on the Scheduled Maturity Date or
an earlier Optional Redemption Date.  If any Interest Payment Date
falls on a date that is not a Business Day, such Interest Payment Date
will be the next succeeding Business Day.

Principal Payment Dates:  Scheduled Maturity Date, or an earlier
Optional Redemption Date

Business Days:            New York

Calculation Agent:        PepsiCo, Inc.

Optional Redemption Dates:  The Step-Up Notes Due April 1, 2002 may be
redeemed, in whole but not in part, at the option of PepsiCo, at 100%
of the principal amount thereof, plus accrued interest to the date of
such redemption, on April 1, 1996, or any subsequent Interest Payment
Date prior to the Scheduled Maturity Date, upon 15 days' written notice
by PepsiCo to the holders of such Notes.

Option to elect prepayment:  None

Sinking fund:                Not applicable

Settlement Date:             March 31, 1995

The Step-Up Notes Due April 1, 2002 will be purchased by the
Underwriter at 100.00% of their principal amount, and will be initially
offered to the public at 100.00% of their principal amount (the
"Initial Offering Price").  The Underwriter has advised PepsiCo that it
intends to offer all or part of the Step-Up Notes Due April 1, 2002
directly to the public initially at the Initial Offering Price of such
Debt Securities.  After the Step-Up Notes Due April 1, 2002 are
released for sale to the public, the offering price and other selling
terms may from time to time be varied by the Underwriter.

For U.S. federal income tax purposes, the Step-Up Notes Due April 1,
2002, will be treated as Fixed Rate Debt Securities, issued without
OID.  This treatment is consistent with the applicable provisions of
the Internal Revenue Code of 1986, as amended, and the final OID
regulations, which are generally effective for debt instruments issued
on or after April 4, 1994.


                          ____________________________

                                Smith Barney Inc
                          ____________________________

March 22, 1995