PepsiCo Invests US77m Into Crisp Production Sustainability

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PepsiCo has invested US$77m into its UK operations to install electric ovens that can cut emissions by 1,500 tonnes annually

In the manufacturing landscape, where sustainability and efficiency go hand-in-hand, PepsiCo is making a substantial impact.

According to Carbon Cloud's research, the carbon footprint of producing crisps is 2.88kg CO₂ per kg, notably stemming from the agricultural and manufacturing processes involved in production.

PepsiCo is combating these impacts through a strategic decarbonisation plan that includes the electrification of ovens in its Leicester manufacturing site.

The company's latest initiative involves an investment of US$77m to introduce three energy-efficient electric ovens at its UK facility.

Jim Andrew, Chief Sustainability Officer at PepsiCo

These electric ovens are part of PepsiCo's broader sustainability strategy, aiding in the progression towards its global objective of achieving net-zero emissions by 2050.

Jim Andrew, Chief Sustainability Officer at PepsiCo, highlighted the significance of these advancements by saying: “What’s the hottest thing going this summer? At our Leicester, UK facility, it’s our new sustainable electric ovens!

“Some of our local fan favourites like Cheetos, Wotsits, and Monster Munch are now cooked in ovens powered by 100% renewable electricity, thanks to the completion of a £58m investment in our Leicester site.

“With two new electric ovens and a third converted from gas to electric, we’re set to cut the site’s greenhouse gas emissions by 1,500 tonnes a year.

“It’s all part of our global pep+ goal to achieve net-zero emissions by 2050, strengthening the resiliency of our business in the near and long-term while honing our focus on where we believe we can have the most positive impact.”

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Electric ovens power sustainable snack production

This substantial investment has enabled the transition from gas to electric ovens, allowing crisps such as Wotsits, Monster Munch, Frazzles, Chipsticks and Cheetos to be cooked using 100% renewable energy.

This transition is reported to reduce the Leicester plant's greenhouse gas emissions by 1,500 tonnes annually.

Additionally, the consolidation of crisp production at the Leicester site will cut transport-related emissions significantly, by approximately 915 tonnes annually, making the shipping and distribution phases of the supply chain more eco-friendly.

Richard Clarke, Manufacturing Director at PepsiCo UK and Ireland, elaborated on the sustainable shift: “It’s fantastic to see the impact of our investment in each and every batch of delicious snacks made using our new electric ovens.

"With a brand-new production line, better facilities for our teams, and now these more sustainable ovens, we’ve been able to transform our home in Leicester and secure its future growth. We’re incredibly proud of all the work that goes into making our iconic snacks right in the heart of the UK, and even more so now we’re doing it in a more sustainable way.”

Richard Clarke, Manufacturing Director at PepsiCo UK and Ireland

Strategies for emissions reduction

PepsiCo aims to halve its Scope 1 and 2 emissions by 2030 and has set an ambitious goal of a 90% reduction by 2050.

In 2022, Scope 1 and 2 emissions accounted for 8% of the total carbon footprint of PepsiCo.

To tackle these emissions, the company is investing in energy efficiency measures, including its resource conservation programme, which focuses on cutting waste in both manufacturing and warehousing operations through improved fuel and electricity use.

Additionally, it is installing renewable electricity assets and utilising renewable fuels such as biomass, biogas and biofuels, as well as electrifying equipment like boilers and heat pumps wherever possible.

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Broader electrification initiatives

Alongside the electric ovens in Leicester, PepsiCo is conducting various electrification pilots globally.

In Belgium, it is trialling heat pump technology and researching decarbonising toasting processes.

Furthermore, the company is actively replacing gas infrastructure with electrical equivalents, including solar-powered systems in Poland.

Ramon Laguarta, CEO, PepsiCo

In total, US$272m is allocated to these decarbonisation efforts, which are projected to cut Scope 1 and 2 emissions by over 125,000 metric tonnes annually.

PepsiCo’s CEO, Ramon Laguarta, emphasised the importance of these strategic initiatives: "Every day, PepsiCo is sourcing ingredients, making products, and creating smiles all over the world.

"As we think about the potential impacts of climate change on suppliers, customers, and consumers in our value chain, we believe strategic action can help build a more sustainable, positive future for us all."

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