The soft drink company has also issued an apology after it was accused of appropriating protest movements of historical significance.
The dumped advert also has a Kiwi connection - it was choreographed by dancer Parris Goebel.
In the advert - which you can watch above - reality star Kendall Jenner is seen leaving a photo shoot to join a protest. She then hands a police officer a can of Pepsi, a move criticised as undermining iconic moments during 1967's Flower Power protest, 1989's Tiananmen Square and 2016's Black Lives Matter protests.
The ad didn't go down well with the daughter of Martin Luther King Jr. "If only Daddy would have known about the power of Pepsi," she tweeted, alongside a picture of a confrontation between her father and police.
I wonder if Treyvon Martin had a Pepsi instead of an Arizona Tea and skittles would he had gotten home safely 🤔 #PepsiLivesMatter— 👅 Issa Yummy (@DivaLexx) April 5, 2017
Pepsi issued a statement, saying "Pepsi was trying to project a global a message of unity, peace and understanding.
"Clearly, we missed the mark, and we apologise. We did not intend to make light of any serious issue. We are pulling the content and halting any further rollout. We also apologise for putting Kendall Jenner in this position."
But it's out of the frying pan and into the fire for Pepsi. Now they're been criticised for apologising to Kendall Jenner rather than activists who took part in or supported protest movements the advert is referencing.
this is me at Pepsi's apology. pic.twitter.com/h3qN9JcIuM— black history heaux (@localblactivist) April 5, 2017
I'm so glad Pepsi made a public apology to Kendall. Because, like, that's the real victim here, guys. pic.twitter.com/n0z6oM1KU1— Ali Friedman (@srslyfrrlwtf) April 5, 2017