PepsiCo’s Journey Towards a Sustainable Future

Introduction and Background

PepsiCo is a global food and beverage company that operates in over 200 countries and
territories. The company sources more than 30 agricultural crops and ingredients from
approximately 60 countries, including potatoes. PepsiCo is committed to creating a more
resilient and sustainable agricultural system that helps protect its continued business growth from
disruption due to climate change, water scarcity, and other factors.

PepsiCo’s Positive Agriculture initiative aims to promote regenerative farming practices that
improve and restore ecosystems, reduce and sequester carbon emissions, improve watershed
health, protect and enhance biodiversity, and improve farmer livelihoods. The company has set
standards for itself and its supply chain to match its ambition for a sustainable agricultural supply
chain over the long term. In 2021, PepsiCo announced new ambitions, setting 2030 goals to
source crops and ingredients in a way that accelerates regenerative agriculture and strengthens
farming communities.

PepsiCo’s commitment to sustainability extends to its potato products. The company has
partnered with British clean-tech firm CCm Technologies to reduce its carbon footprint by
turning potato waste into fertilizer using innovative carbon-capture technology. PepsiCo also
works with its farmers to optimize crop yields, respect human rights, improve farmer livelihoods,
and secure the supply of agricultural ingredients.

In summary, PepsiCo is committed to creating a more resilient and sustainable agricultural

system that helps protect its continued business growth from disruption due to climate change,
water scarcity, and other factors. The company’s Positive Agriculture initiative aims to promote
regenerative farming practices that improve and restore ecosystems, reduce and sequester carbon
emissions, improve watershed health, protect and enhance biodiversity, and improve farmer
livelihoods. PepsiCo is also working to optimize crop yields, respect human rights, improve
farmer livelihoods, and secure the supply of agricultural ingredients.

Our Commitment to Mother Earth:

By conserving nature’s precious resources and fostering a more sustainable planet for our
children and grandchildren. The statement implies that by taking actions to conserve natural
resources and promote sustainability, we can create a better world for future generations. This
aligns with the values of many organizations and individuals who are committed to
environmental stewardship and sustainability.

Our Product Lines

Lays

1
 Lay’s is a brand of potato chips that was founded in the United States and is now owned
by PepsiCo. The brand is known for its wide range of flavors, including Dill Pickle, Barbecue,
and Classic Salted. Lay’s is one of the many products offered by PepsiCo, which is a global food
and Beverage Company that operates in over 200 countries and territories. PepsiCo’s portfolio
includes a variety of brands such as Aquafina, Cheetos, Doritos, Fritos, Gatorade, Mountain
Dew, Pepsi, Quaker, and Tropicana.
Lay’s potato chips are made from high-quality potatoes and are cooked to perfection to give
them a crispy texture and delicious taste. The brand has a wide range of flavors to choose from,
including classic flavors like Salted, Barbecue, and Sour Cream & Onion, as well as unique
flavors like Flamin’ Hot Dill Pickle Remix and Chile Limón. Lay’s also offers a variety of other
snack products, including Wavy Lay’s, Lay’s Stax, and Lay’s Poppables.
In summary, Lay’s is a brand of potato chips that is owned by PepsiCo. The brand is known for
its wide range of flavors and is made from high-quality potatoes. Lay’s is just one of the many
products offered by PepsiCo, which is a global food and Beverage Company that operates in
over 200 countries and territories.

Business Model

Value proposition

The benefits that a company delivers to customers who buy its products or services can vary
depending on the company and the product or service in question. Some common benefits
include:

1. Price advantage: Large companies often have economies of scale that allow them to offer lower
prices than smaller companies. Smaller companies may offer lower prices to gain market share.
2. Customer service: Large companies may have more resources to devote to customer service, but
smaller companies may provide more personalized service.
3. Credit availability: Large companies may offer easier credit terms, but smaller companies may
be more flexible with payment options.
4. Product quality: Companies may differentiate themselves by offering higher quality products or
services than their competitors.
5. Innovation: Companies may invest in research and development to create new and innovative
products or services

Profit Formula

This means that the goal of marketing is to create products or services that meet the needs of
customers and generate profits for the company. To achieve this, companies must carefully
balance the cost of producing their products or services with the price they charge

2
 customers. They must also consider the value that their products or services provide to customers
and how they can differentiate themselves from competitors.
In order to increase profitability, companies can consider the following strategies:

1. Charge premium: Companies can charge higher prices for their products or services if they
offer unique features or benefits that are not available from competitors.
2. Sell more: Companies can increase revenue by selling more products or services to existing
customers

Value Proposition- We do not sell Lay’s, we sell quality

1. Lay’s is a premium product made with quality ingredients. The potatoes used in Lay’s
chips are farm-grown and cooked to perfection, resulting in a crispy texture and fresh
potato taste

2. Sustainability is becoming increasingly important in the business world. Companies that

adopt sustainable practices are able to meet their needs without compromising the needs
of their customers, stakeholders, or the planet. In addition to driving social and
environmental change, sustainability initiatives can contribute to an organization’s
overall success. Studies show that the most sustainable companies are also the most
profitable. By caring about people and the planet, companies can differentiate themselves
and stand out as leaders

3. By achieving economies of scale, companies can improve their profitability by reducing

their average cost per unit of output. This is because the cost of producing each unit
decreases as the number of units produced increases. As a result, companies can sell their
products at a lower price while still maintaining their profit margins.

OUR VALUE CHAIN

PepsiCo’s value chain consists of a series of activities that add value to its products and
services. The company sources raw materials from thousands of suppliers around the world,
primarily agricultural raw materials. PepsiCo’s complex value chain begins with the sourcing of
more than 30 agricultural crops and ingredients from farmers and suppliers around the
world. The company then processes these raw materials into finished products, such as soft
drinks, snacks, and breakfast foods.

PepsiCo’s value chain can be divided into two categories: primary activities and support
activities 1. Primary activities include inbound logistics, operations, outbound logistics,

3
marketing and sales, and service. Support activities include procurement, technology
development, human resource management, and infrastructure.

Inbound logistics involves the sourcing of raw materials from suppliers around the
world. Operations involve the processing of these raw materials into finished products. Outbound
logistics involves the distribution of these finished products to customers. Marketing and sales
involve the promotion and sale of these products. Service involves providing customer support
and after-sales service.
Procurement involves the acquisition of goods and services from suppliers. Technology
development involves the development of new products and processes. Human resource
management involves the recruitment, training, and development of employees. Infrastructure
involves the management of facilities, equipment, and other resources.

By optimizing its value chain, PepsiCo is able to create value for its customers and stakeholders
while also reducing costs and increasing efficiency. The company’s commitment to sustainability
and innovation has helped it maintain its position as one of the leading food and beverage
companies in the world.

Organic & Modern Fields

PepsiCo is a global food and beverage company that operates in over 200 countries and
territories. The company has been prioritizing sustainability through its ambitious pep+ plan,
which aims to create value and drive growth while placing sustainability at the center of its
operations. As part of this plan, PepsiCo has more than doubled its average organic revenue
growth in North America to 5.3% between 2019 and 2021, up from 1.5% between 2016 and
2018.

Agriculture is core to PepsiCo’s business, and the company sources more than 30 agricultural
crops and ingredients from approximately 60 countries. PepsiCo is committed to creating a more
resilient and sustainable agricultural system that helps protect its continued business growth from
disruption due to climate change, water scarcity, and other factors. The company is also working
to convince its farmers to embrace regenerative agriculture, which can help reduce the use of
synthetic fertilizers, herbicides, and insecticides, leading to cost savings and environmental
benefits.
In summary, PepsiCo is a global food and beverage company that prioritizes sustainability
through its pep+ plan. The company sources more than 30 agricultural crops and ingredients
from approximately 60 countries and is committed to creating a more resilient and sustainable
agricultural system.

Organic Potato’s

4
PepsiCo is a global food and beverage company that operates in over 200 countries and
territories. The company sources more than 30 agricultural crops and ingredients from
approximately 60 countries, including potatoes. PepsiCo is committed to creating a more
resilient and sustainable agricultural system that helps protect its continued business growth from
disruption due to climate change, water scarcity, and other factors.

PepsiCo’s Positive Agriculture initiative aims to promote regenerative farming practices that
improve and restore ecosystems, reduce and sequester carbon emissions, improve watershed
health, protect and enhance biodiversity, and improve farmer livelihoods 1. The company has set
standards for itself and its supply chain to match its ambition for a sustainable agricultural supply
chain over the long term 1. In 2021, PepsiCo announced new ambitions, setting 2030 goals to
source crops and ingredients in a way that accelerates regenerative agriculture and strengthens
farming communities.

PepsiCo’s commitment to sustainability extends to its potato products. The company has
partnered with British clean-tech firm CCm Technologies to reduce its carbon footprint by
turning potato waste into fertilizer using innovative carbon-capture technology. PepsiCo also
works with its farmers to optimize crop yields, respect human rights, improve farmer livelihoods,
and secure the supply of agricultural ingredients.

In summary, PepsiCo is committed to creating a more resilient and sustainable agricultural

system that helps protect its continued business growth from disruption due to climate change,
water scarcity, and other factors. The company’s Positive Agriculture initiative aims to promote
regenerative farming practices that improve and restore ecosystems, reduce and sequester carbon
emissions, improve watershed health, protect and enhance biodiversity, and improve farmer
livelihoods. PepsiCo is also working to optimize crop yields, respect human rights, improve
farmer livelihoods, and secure the supply of agricultural ingredients.
.

Packaging & Distribution

PepsiCo has a comprehensive packaging strategy that aims to build a world where packaging
never becomes waste. The company relies on diverse packaging solutions to safely deliver
products to its customers and consumers. PepsiCo designs its packaging materials to balance
several critical criteria, including compliance with food safety regulations, maintaining quality of
the product, environmental sustainability, affordability, and consumer preferences, including
convenience.

PepsiCo’s sustainable packaging vision is to build a world where packaging never becomes
waste. The company recognizes and shares the concern that packaging, when disposed of
incorrectly after a product has been consumed, may end up as waste in the marine environment
or on land. To address this issue, PepsiCo has set a goal to make 100% of its packaging
recyclable, compostable, or biodegradable by 2025.

5
In terms of distribution, PepsiCo utilizes a highly distributed network and channel of plants,
warehouses, and distribution centers owned or leased by its contract manufacturers, co-packers,
strategic alliances, or joint ventures in which PepsiCo has an equity interest. This allows the
company to reach a wide range of customers and consumers around the world.

Our Impact on the Environment

PepsiCo is committed to sustainable practices and has implemented a program called Positive
Agriculture 1. The program aims to promote regenerative farming practices that improve and
restore ecosystems, reduce carbon emissions, improve watershed health, protect and enhance
biodiversity, and improve farmer livelihoods. PepsiCo sources more than 30 agricultural crops
and ingredients from approximately 60 countries, including potatoes.

PepsiCo has a comprehensive packaging strategy that aims to build a world where packaging
never becomes waste. The company relies on diverse packaging solutions to safely deliver
products to its customers and consumers. PepsiCo designs its packaging materials to balance
several critical criteria, including compliance with food safety regulations, maintaining quality of
the product, environmental sustainability, affordability, and consumer preferences, including
convenience. PepsiCo’s sustainable packaging vision is to make 100% of its packaging
recyclable, compostable, or biodegradable by 2025.

PepsiCo has also made significant progress in driving down climate emissions by reducing the
amount of virgin plastic used, using water more efficiently, and focusing on nutrition,
agriculture, and people and communities. However, PepsiCo has been criticized for its
contribution to plastic pollution. Each year, PepsiCo sells about 60 billion plastic bottles, making
it the second most prevalent waste product found in annual sea water and beach cleanups in 45
countries. Studies indicate that PepsiCo is responsible for 10% of all global plastic pollution.