PepsiCo – Performance with Purpose

PepsiCo is a multinational food and beverage company. It is compromised of some of the world’s most recognized brands, such as Frito Lay, Tropicana, Quaker and Gatorade. I wanted to discuss PepsiCo, not because of their success in the food and beverage industry, but because of their leadership in sustainability.

In 2015, they were awarded as one of Canada’s top 50 socially responsible companies. PepsiCo has made water scarcity the focus of their business model, and they have seen tremendous success in the last ten years. Since 2006, PepsiCo has improved their water efficiency by 20% – this converted into 14 billion litres of water cut from their operations!

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PepsiCo isn’t only focusing on their business operations, they have also partnered with NGOs to deliver clean water to communities in need. In 2007, PepsiCo set a target to provide three million people around the world with safe water by 2015. I was so impressed to discover that PepsiCo not only achieved this goal, but they did it three years ahead of schedule.

PepsiCo has sustainability at the core of their organization. Under each of their brands, they have implemented processes that  reduce their impact on the environment. For example, Quaker Foods and Snacks has decreased their landfill waste by almost 50% from 2010-2011. Frito Lay Canada has converted almost all their transportation to electric vehicles to reduce their carbon footprint. For further details regarding PepsiCo’s brands, visit their Sustainability Environmental fact sheet.

In my opinion, when I think of health I don’t really think of PepsiCo. However, after reading through PepsiCo’s Human Sustainability fact sheet I had a new perspective. For example, Frito Lay launched a new baked chip that has 80% less fat than the leading potato chip. Tropicana introduced a juice that has 50% less sugar and calories than the leading 100% juices. I think this transition to health and wellness is a smart business decision, as they can grow with the health trends and attract a wide variety of consumers.

We discussed in class how important it is for businesses to set targets for themselves, and share their progress with the public. I admire PepsiCo for their transparency and social responsibility initiatives. I think it is industry leaders like Pepsi that will set the standard for years to come. Well done Pepsi!

4 thoughts on “PepsiCo – Performance with Purpose

  1. I was honestly not aware of all this actions PepsiCo is taking towards sustainability. It is great that they’re not only changing the ingredients of their products to make them healthier, but they’re also taking care of their supply chain environmental impact, such as the use of electric transportation for Frito Lay Canada, and contributing to projects that help communities in need such as the water initiative. I think they’re taking a 360º sustainability initiative and I find it very admirable because it shows that they really care and get involved in every aspect where their company can make an impact. The only thing I wonder is how they will start communicating all these changes to the customers. Will they use huge re-branding and marketing strategies or will they keep it quiet as a separate part of their business?

  2. I also had no idea PepsiCo was this dedicated to pursuing sustainability; I wonder why the leaders of PepsiCo ultimately decided on agreeing to take this path? I was skeptical until the point where I read that they took a step outside their business operations and partnered with NGOs to develop communities in need. This initiative seemed very genuine to me! However, at the same time, it may be my keenness, but I could not help thinking about the amount of the water that they used. Instead of congratulating them on the 20% efficiency of water usage, a number larger than 70 billion liters kept swimming in my head.

    I also took a quick look at PepsiCo’s biggest competitor, Coca Cola, to see what they were doing and it seems that they are also doing a quite a bit of sustainable and social activities! Two thumbs up for both companies.

    http://www.coca-colacompany.com/topics/sustainability/

  3. Like Joseph and Pamela, I had no idea PepsiCo was taking such steps to ensure they are practicing sustainability. When I think of PepsiCo, I think of a company that is driven by profits and brand success. I think of a company that has created an unhealthy drink that has captured the entire world’s attention. However, it is so nice to see that the company is much more than that. The fact that this multi-million dollar company is taking steps to reduce their carbon footprint, making their product healthier and helping communities, is truly amazing. Part of me is still skeptical and wonder why PepsiCo is not making their intuitive more known. Although the company is doing great things, I cannot help but think that they still have quite a way to go. As a customer that falls into their target demographic, it is interesting that I have not heard about their sustainable practices. Great post Braelyn, very informative!

  4. After reading your post, I’m really starting to think that PepsiCo is a sustainability-minded leader. I like that you mention how you don’t necessarily think of PepsiCo in relation to health (those two words almost seem opposite to me), but the fact that the company has taken steps to make their products better for consumers and the environment shows that they are forward thinking. It seems that PepsiCo is aware of the fact that there will always be a market for these “unhealthy” items (at least for the foreseeable future) but realizes the impact it can have in making those items ‘better’. I am quite surprised that I haven’t heard or seen much about PepsiCo’s sustainable practices, such as bringing clean water to communities, electric transportation, and reduction of landfill waste.

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