Beverage and snacks maker PepsiCo has agreed to incorporate Loop Industries’ PET plastic, which is 100% recycled material, into its product packaging by early 2020.
Image: PepsiCo headquarters in Purchase, New York. Photo: courtesy of PepsiCo.
The companies have signed a multi-year supply agreement that will allow PepsiCo to purchase production capacity from the joint venture (JV) facility of Loop in the US.
Loop Industries founder and CEO Daniel Solomita said: “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.”
Loop PET plastichas been identified by PepsiCo as a commercially viable technology to expand the amount of recycled content in its product packaging, enabling to meet its sustainability efforts.
The agreement is part of PepsiCo’s commitment to adopt different and creative approaches to the challenges of plastics and waste.
Loop PET plastic enables 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 were degraded by sun and salt to meet FDA requirements for use in food-grade packaging.
PepsiCo vice chairman and chief scientific officer Mehmood Khan said: “Loop’s technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste.
“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 plan to enhance awareness regarding the significance of recycling, sustainability and the circular economy.
PepsiCo markets its food and beverage products in more than 200 countries and territories across the globe.
The firm, which generated over $63bn in net revenue in 2017, has product brands such as Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana.
In September this year, Loop Industries has formed a JV with Indroma Ventures to manufacture and commmercialize sustainable polyester resin to meet the increasing global demand from beverage and consumer packaged goods companies.