PRICING SUPPLEMENT NUMBER 7                               Filed Under Rule
(To Prospectus dated November 28, 1995)               424(b)(2) and 424(c)
CUSIP 71345L DV-7                                        File No. 33-64243
                            

                                  $25,000,000


                                  PepsiCo, Inc.



       7.30% Callable Fixed Rate Debt Securities Due June 15, 2011
                            Interest Payable Monthly
                            -----------------------


    Underwriter:               Merrill Lynch, Pierce, Fenner & Smith
                               Incorporated

    Initial Offering  Price:   The 7.30%  Callable  Fixed Rate
                               Debt  Securities  Due June 15, 2011 ("Notes") are
                               being  purchased by the  Underwriter at 97.90% of
                               their  principal  amount  and  will  be  sold  at
                               varying   prices  to  be   determined   based  on
                               prevailing market prices at the time of sale.

    Underwriter's Discount:    2.10%

    Currency:                  U. S. Dollars

    Date of Issue:             June 5, 1996

    Issuance form:             Book entry

    Scheduled Maturity Date:   June 15, 2011

    Interest Rate:             7.30% per annum

    Day count basis:           30/360

    Interest Accrual  Date:    June 5,  1996 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 15th of each month,
                               commencing July 15, 1996, and ending on the
                               Scheduled Maturity Date or an earlier Optional
                               Redemption Date.

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

    Business Days:             New York

    Calculation Agent:         PepsiCo, Inc.

    Optional Redemption Dates: The Notes 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 June 15, 2000, and semiannually
                               thereafter on each June 15th and December
                               15th, upon 30 days' written notice by PepsiCo
                               to the Trustee under the Indenture dated as of
                               December 14, 1994 for the benefit of the
                               holders of such Notes.

    Option to elect prepayment: None

    Sinking fund:              Not applicable

    Settlement Date:           June 5, 1996

The Notes will be  purchased  by the  Underwriter  at 97.90% of their  principal
amount,  and will be offered to the public at varying prices to be determined by
the Underwriter based on prevailing market prices at the time of sale.

For U.S.  federal  income tax purposes,  the Notes 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.


                          ----------------------------

                               Merrill Lynch & Co.
                          ----------------------------

May 28, 1996