We’re making it easier for consumers to make choices that feel good for themselves and are good for the planet
2019 Sustainability Report: Focus Areas
Improving choices across our portfolio
Around the world, consumers enjoy PepsiCo products more than one billion times a day. With that global scale comes an enormous opportunity to provide our consumers with products that meet human needs for nutrition and enjoyment.
To help build a more sustainable food system, we are making it easier for consumers to choose foods and beverages that feel good for themselves and are good for the planet. We’re improving the nutritional profile of our products, working to provide simple, clear information on our packaging, rethinking packaging sizes, and leveraging the scale of our brands to drive positive change.
We also know that our consumers care about the planet and their community, so we’re continuing to expand our Sustainable from the Start program. This program empowers our product development teams to consider the environmental impacts of their decisions at every stage, from concept to launch, including ingredients, packaging, and distribution.
Our product sustainability goals are to reduce added sugars in our beverages and sodium and saturated fats in our food products so that people can continue to enjoy our most-loved brands as part of a balanced diet.
"Having spent my life dedicated to improving food for everyone, I appreciate the steps PepsiCo is making to reduce salt, fat, and sugar in their portfolio. As a proud partner with PepsiCo for many years now, Partnership for a Healthier America looks forward to continuing our work together to transform the food landscape in pursuit of health equity."
President & CEO
Partnership for a Healthier America
"At PepsiCo, we're working to inspire people to live richer lives through products that provide joy and nutrition while enabling more sustainable living. To provide consumers with more of what they need and want, we're transforming our portfolio through innovation and reformulation that is guided by rigorous science-based nutrition guidelines. Our broad portfolio of foods and beverage options makes it easier and more convenient for consumers to make the choice that is right for them."
PepsiCo Chief Science Officer
Reducing added sugars in our beverages and expanding low-sugar options
At PepsiCo, consumers are at the center of everything we do. Our global scale gives us the opportunity to reach a wide range of consumers with nutritious and great-tasting foods and beverages that are accessible and affordable.
PepsiCo product reformulations, including reducing added sugars, sodium, and saturated fat, are based on the PepsiCo Nutrition Criteria, a set of science-based nutrition guidelines for our product developers that inform the transformation and diversification of our portfolio. These criteria define maximum thresholds for the nutrients we aim to limit and minimum levels for the nutrients and food groups we want to encourage. Our goal for reducing added sugars provides an important example.
We’re reducing added sugars across our beverage portfolio to meet the demand for balanced beverage options. As of 2019, 47% of our beverage portfolio volume in our top 26 beverage markets met our 2025 added sugars reduction target, progress toward our goal of 67%.
- Mtn Dew Zero Sugar:
In the U.S., we’re providing our consumers with the same Mtn Dew taste, without the sugar.
- H2Oh! Grapefruit:
In 2019, we launched a new H2Oh! flavor in Colombia, providing consumers with a refreshing zero-calorie option.
- G Active:
In Brazil, we launched a zero-calorie Gatorade option, providing athletes with the fluid and electrolytes they need to replace during exercise.
In 2019, we launched two new flavors of bubly—watermelon and pineapple—in the U.S., further expanding our portfolio of zero-calorie options.
- Pure Leaf Cold Brew:
In early 2020, Pure Leaf released new Unsweetened Black Tea Cold Brew. A ready-to-drink tea brewed 3x longer at a colder temperature, with no added sugar and zero calories.
Expanding Pepsi Zero Sugar Around the World
By expanding the availability of a no-calorie version of our most iconic brand, we’re providing our consumers with choices to meet every taste, lifestyle, and occasion.
Since the beginning of 2016, we've expanded the availability of no-sugar Pepsi Black, also known as Pepsi Zero Sugar in the U.S., and Pepsi MAX in Western Europe, to 95 markets. Pepsi Black made its debut across the Middle East and North Africa in 2019, launching in major retailers in the Kingdom of Saudi Arabia, United Arab Emirates, Egypt, Jordan, Kuwait, Oman, Bahrain, Libya, and Morocco.
To help our consumers continue to enjoy the products they love as part of a balanced diet, we’re using innovative seasoning techniques and exploring alternative healthier oils to reformulate snacks from around the world to meet our sodium and saturated fat reduction targets.
Reduced Saturated Fat
As of 2019, 62% of our food portfolio volume in our top 23 foods markets met our 2025 saturated fat reduction target, progress toward our goal of 75%.
PepsiCo offers Lay’s Oven Baked Original Potato Chips, which have 65% less total fat than regular potato chips, in 23 markets around the world.
We’ve also reduced saturated fat across our Australian and New Zealand product portfolio by up to 75% in brands like Doritos, Twisties, and Bluebird.
In 2019, we completed significant saturated fat reduction projects across three of our key East Europe markets. This work impacted 30 recipes across our Lay’s brand in Russia, 16 recipes across the Lay’s brand in Ukraine, and 18 across multiple product types in Poland. This effort reduced the average saturated fat per 100g by approximately 17% across these three markets.
As of 2019, 61% of our food portfolio volume in our top 23 foods markets met our 2025 sodium reduction target, progress toward our goal of 75%.
In 2019, SunChips Harvest Cheddar, sold in the U.S., was reformulated to meet our sodium goal.
In 2019, we reformulated 33 recipes across our South Africa Foods business. As a result, sodium is down approximately 7% compared to 2018.
In 2019, Uncle Chipps Salted was reformulated to meet our sodium goal.
In 2019, Lay's Forno Black Pepper was reformulated to meet our sodium goal.
In 2019, Coolpak Original Popcorn was reformulated to meet our sodium goal.
Over the years, PepsiCo has acquired new brands to offer more choices and help meet consumer needs for flavor and convenience as part of a balanced diet.
In 2020, BFY Brands, the maker of PopCorners snacks joined the PepsiCo family. Sustainability is at the core of BFY Brands – a value we share. The BFY portfolio also includes options like FLEX protein crisps, which provide consumers with 10 grams of plant-based protein per serving. We also acquired Pioneer Foods, an acquisition that brings locally relevant South African cereals, juices, and nutritional food staples to our portfolio, including well-known brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko, and White Star.
In early 2020, we announced an agreement to acquire Be & Cheery, one of the largest online snacks companies in China with product offerings across nuts, dried fruits, meat snacks, baked goods, and confectionery. Be & Cheery predominantly sells online through the major e-commerce platforms in China.
In 2019, we also acquired CytoSport, makers of Muscle Milk and Evolve Protein. This builds on 2018 portfolio additions, such as Bare baked fruit and vegetable snacks and Health Warrior, a snack brand that makes bars and mug muffins with ingredients like chia and pumpkin seeds.
PepsiCo is developing more convenient, satisfying food and beverage options that are easy to prepare and consume. These products are right-sized for consumers on-the-go and make it easier for our consumers to eat in a way that fits their lifestyle and supports a more sustainable food system.
Partnering closely with our community of farmers in Southern Spain is the key to guaranteeing the quality and freshness of our vegetables. That’s why all of the tomatoes, cucumbers, and bell peppers in our Gazpacho Original are cultivated less than 200 km from our plant in Murcia. One 100 mL serving of Alvalle Traditional Gazpacho contains 12g fiber and 46 calories.
See how the world’s largest gazpacho brand is sustainably made
Some other satisfying on-the-go options include:
Porridge To Go Squares
Whey Protein Bars
Sabra Snack Cups
Hummus with Pretzel Crisps
PepsiCo and our partners are paving the way for more sustainable, nutritious, and tasty oat varieties. For the first time ever, PepsiCo has sequenced an entire oat genome and made it publicly available?via an open source platform to continue the advancement of oat research. Through a collaborative effort with Corteva Agriscience and other key partners, we were able to unlock the difficult oat genome sequence in just a few months’ time, leading to an oat varietal that is more sustainable and disease-resistant, to support a more resilient supply chain for Quaker.
While oat grains are already flavorful and rich in fiber and essential nutrients, understanding the full genome improves our ability to target these qualities for consumers looking for elevated nutrition profiles from their oats.
As we continue to tackle food security around the world, this important discovery may lead to better yield and healthier soils, as well as potentially reducing the amount of land and resources needed to grow oats.
Providing easy-to-find, easy-to-understand information about what’s inside our products helps consumers make the right choices for themselves and their families. Around the world, we are supporting various voluntary front-of-pack labeling systems to provide our consumers with the information they are looking for when making product choices.
In Australia, we’re using the Health Star Rating on our packaging. This front-of-pack labeling system rates the nutritional profile of a product within a category, on a ½ – 5-star scale. In 2019, our entire line of Off the Eaten Path products had a 3.5 or higher rating.
Health Star Rating on our Off the Eaten Path Nut & Veggie Mix sold in retailers in Australia.
As part of a 2020 pilot program, we announced that our products in France, Alvalle cold soups, Lay's chips, Bénénuts seeds, and Quaker breakfast cereals, will begin using the Nutri-Score labeling system. This optional labeling system uses a 5-letter scale – A to E – and a color-coding system to help consumers make more informed decisions.
PepsiCo is investing in forward-looking food and beverage brands and the entrepreneurs who are creating new business models and financing tools that directly support sustainability research and innovation.
In 2019-2020, PepsiCo supported these valuable programs:
North American Greenhouse Program, an innovation initiative designed to support emerging entrepreneurs and brands in the food and beverage industry.
Stacy’s RISE Project & WomenMade: a funding and mentorship program exclusively for female entrepreneurs in the food and beverage industry. In 2019, as part of the Stacy’s RISE Project, Frito-Lay North America launched the inaugural WomenMade initiative, which aims to advance female-founded start-ups in the food and beverage industry.
At PepsiCo, we’re proud of our brands and the experiences they offer to consumers. We believe our brands can be powerful forces for good, helping bring positive change to society and smiles to consumers.
Lay's spotlighted 31 inspirational "Everyday Smilers" in 60+ unique packaging designs, donating $1 million in sales proceeds to the international medical charity Operation Smile. Everyday Smilers are individuals who are sharing joy and helping others in a wide variety of ways, reflecting the brand's mission to share joy through the power of a smile.
In Mexico, Sabritas launched its campaign “One Smile Leads to Another” and partnered with Operation Smile for the fourth consecutive year. Since 2017, the brand and The PepsiCo Foundation provided over 250 Mexican children with full medical treatments, including surgeries and language therapy through this initiative.
In June 2019, LIFEWTR Mexico and the Contemporary Arts Board partnered to create the LIFEWTR Fund for the Arts, a fund to support artistic projects with profound social impact and to recognize diverse contemporary art initiatives of social character. From June to December 2019, the LIFEWTR Fund for the Arts supported three local projects in the towns of Zacatecas, Tlaxcala, and Mexico City, benefiting a total of 2,670 people.
In 2019, Pepsi partnered with MOMHANDWORKS, a public welfare project initiated by China Women‘s Development Foundation (CWDF) to protect and promote China’s intangible cultural heritage and support traditional craftsmanship while creating jobs for rural indigent women with handicraft skills. Pepsi kicked off the partnership by funding an embroidery workshop and a paper-cutting studio.? The partnership was highlighted on the brand’s packaging with the launch of a limited-time offer can and branded Pepsi merchandise that featured the embroidery and paper-cut designs.
PepsiCo’s sparkling water brand, bubly, celebrated love for all flavors and people with a special rainbow colored All for Love Pride Pack. The brand has also supported the Susan G. Komen breast cancer foundation with its Cans for Good campaign. In addition to using bubly cans for good, bubly pledged more than $220,000 to the organization.
In Brazil, Doritos partnered with the It Gets Better Project to celebrate and support the lesbian, gay, bisexual, and transgender (LGBT) community around the world. Consumers who donated $10 or more to support the It Gets Better Project were mailed a limited-edition bag of Doritos Rainbow chips. Upon making their donations, consumers were encouraged to share messages of hope and inspiration using #BoldandBetter.
In Mexico, Doritos partnered with the "Cuenta Conmigo, Diversidad Sexual Incluyente" organization to show that love is BOLD, reinforcing the brand's commitment to diversity and human rights. The 2019 "Unlock the Love" program featured packaging designs with the faces of representatives and allies of the LGBT+ community.
2019 was the fourth edition of the Gatorade 5v5 Football Tournament, an annual five-a-side competition for 14- to 16-year-olds, which runs across Latin America, North America, Asia, and Europe. The tournament aims to fuel the next generation of athletes and provide them with the opportunity to compete for their country on a global stage, reinforcing the brand’s commitment to generate formative experiences for athletes around the world. Since the tournament started four years ago, more than 18,900 teams have competed.
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