PRICING SUPPLEMENT NUMBER 18                    Filed Under Rule
(To Prospectus dated January 11, 1995)          424(b)(2) and 424(c)
CUSIP 71345L DD 7                               File No. 33-57181

                           $25,000,000


                          PepsiCo, Inc.



            7.15% Callable Debt Securities Due August 22, 2007
                        Interest Payable Monthly
                         _______________________


Underwriter:  Morgan Stanley & Co. Incorporated

Initial Offering Price:  100.00%

Underwriter's Discount:  0.00%

Currency:  U. S. Dollars

Date of Issue:  August 22, 1995

Issuance form:  Book entry

Scheduled Maturity Date:  August 22, 2007

Coupon: 7.15% per annum

Day count basis:        30/360

Interest Accrual Date:  August 22, 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:  Monthly on the 22nd of each month, commencing
September 22, 1995 and ending on the Scheduled Maturity Date or an
earlier Optional Redemption Date.

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

Business Days:          New York

Calculation Agent:      PepsiCo, Inc.

Optional Redemption Dates:  The 7.15% Callable Debt Securities Due
August 22, 2007 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 any August 22, or
February 22 prior to the Scheduled Maturity Date commencing on August
22, 1997, upon 15 days' written notice by PepsiCo to the holders of
such Notes.

Option to elect prepayment:  None

Sinking fund:  Not applicable

Settlement Date:  August 22, 1995

The 7.15% Callable Debt Securities Due August 22, 2007 will be
purchased by the Underwriter 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 7.15% Callable Debt Securities Due
August 22, 2007 directly to the public initially at the Initial
Offering Price of such Debt Securities.  After the 7.15% Callable Debt
Securities Due August 22, 2007 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 7.15% Callable Debt
Securities Due August 22, 2007 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.


                     ____________________________


                     Morgan Stanley & Co. Incorporated
                      ____________________________

July 31, 1995