PepsiCo signs supply agreement for sustainable PET


PepsiCo Inc. in the USA has signed a multi-year supply agreement with Loop Industries Inc., a leading technology innovator in sustainable plastic founded in 2015 and based in Montréal, Canada. The deal secures production capacity from Loop’s joint-venture facility in the USA, enabling PepsiCo to incorporate Loop PET, which is 100% recycled material, into its product packaging from early 2020 onwards.

Loop’s revolutionary technology enables all no-value and low-value plastics such as polyester fibres from carpets, clothing, plastic bottles, packaging and even ocean plastics to be diverted, recovered and up-cycled into virgin-quality PET plastic. In line with the Loop mission to accelerate the world’s shift toward sustainable plastic and away from the traditional ‘take, make and dispose’ economy, the company has developed an innovative patented, zero-energy depolymerization process to break down waste plastic into its monomers which are then purified. After all solid waste and contamination such as colouring, additives and organic and inorganic impurities have been removed, the monomers are then repolymerized into PET. The resulting product meets FDA requirements for food-grade packaging.

Circular economy for plastics

PepsiCo is one of the largest purchasers of recycled PET plastic in the consumer goods industry. PepsiCo has identified Loop PET as a commercially viable technology to expand the amount of recycled content in its product packaging. Hence, this move is a good fit with the beverage giant’s ‘Performance with Purpose’ vision to deliver top-tier financial performance over the long term by integrating sustainability into its business strategy. “Loop’s technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste”, said 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.”

The deal also includes marketing and communications plans to raise awareness of the importance of recycling, sustainability and the circular economy.