PepsiCo takes sustainability stride by signing landmark agreement with recycled PET supplier Loop

12 Oct 2018 --- PepsiCo and Loop Industries, a leading technology innovator in sustainable plastic, have entered into a multi-year supply agreement that will enable PepsiCo to purchase production capacity from Loop's joint venture facility in the US and incorporate Loop PET plastic, which is 100 percent recycled material, into its product packaging by early 2020.

As the demand for sustainable packaging solutions continues to grow, Loop Industries has emerged with truly transformational technology that allows no and low-value plastics to be diverted, recovered and recycled endlessly into new, virgin-quality Loop PET plastic.

This innovation allows plastic bottles and packaging of any color, transparency or condition, carpet, clothing and other polyester textiles that may contain colors, dyes or additives, and even ocean plastics that have been degraded by sun and salt to meet FDA requirements for use in food-grade packaging.

As one of the largest purchasers of recycled PET plastic in the consumer goods space, PepsiCo has identified Loop PET as a commercially viable technology to expand the amount of recycled content in its product packaging and help meet its sustainability ambitions and consumer needs.

This agreement aligns with PepsiCo's Performance with Purpose vision and highlights the company's commitment to adopt different and creative approaches to the challenges of plastics and waste.

“Loop's technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste,” says Dr Mehmood Khan, Vice Chairman and Chief Scientific Officer, PepsiCo. “This partnership represents a step-change that will empower PepsiCo in our drive towards creating a circular economy for plastics.”

“We are very proud to supply PepsiCo with Loop branded PET plastic,” says Daniel Solomita, Founder and CEO of Loop Industries. “Working with a global food and beverage giant like PepsiCo will further establish the value proposition of the Loop brand and mission – to accelerate the world's shift toward sustainable plastic and away from the traditional, take, make and dispose economy.”

The deal will also include a marketing and communications plan to raise awareness of the importance of recycling, sustainability and the circular economy.

The news comes at the same time as the publication of the Break Free From Plastic's much-publicized report into the world's most plastic polluting companies, based on 239 cleanups and brand audits spanning 42 countries and six continents. PepsiCo, along with Coca-Cola and Nestlé, was found to be the worst culprit.

Gian-Carlo Peressutti, Vice President Global Communications at PepsiCo, tells PackagingInsights: “PepsiCo shares the concern that plastics and other waste are accumulating in the marine environment and on land, which is why we are committed to achieving 100 percent recyclable, compostable or biodegradable packaging by 2025.”

“Protecting our planet is hugely important to us and the issue of plastics and waste requires urgent attention. PepsiCo has a number of initiatives in place to increase recycling rates and reduce the amount of packaging we use all while working with experts and investing in this space to bring the latest sustainable packaging advances to market.”

“We don’t have all the answers yet, and we will continue to collaborate with a number of leaders in this area to learn and share the latest science and practical solutions,” he adds.

Loop's mission is to accelerate the world's shift toward sustainable plastic and away from dependence on fossil fuels. Loop has created a revolutionary technology poised to transform the plastics industry. This ground-breaking technology decouples plastic from fossil fuels by depolymerizing waste polyester plastic to its base building blocks (monomers). The monomers are then repolymerized to create virgin-quality polyester plastic that meets FDA requirements for use in food-grade packaging.

According to PepsiCo estimations, the company’s products are consumed more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than US$63 billion in net revenue in 2017, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana.

PepsiCo claims that “the success of the company is inextricably linked to the sustainability of the world around us.” The agreement with Loop signals a genuine commitment from PepsiCo to find economically viable sustainability improvements in its packaging and waste management.

Edited by Joshua Poole