PepsiCo makes progress on global commitments

by Eric Schroeder
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PURCHASE, N.Y. — PepsiCo, Inc. conserved more than 12 billion liters of water and achieved a 16% reduction in per unit use of energy in its beverage plants and a 7% reduction in its snack plants in 2009 compared to a 2006 baseline, according to the Purchase-based company’s latest corporate citizenship report.

The report, “Performance with Purpose: Investing in Sustainable Growth,” highlights PepsiCo’s progress on 47 global goals focusing on nutrition, environmental sustainability and workplace practices. Specific commitments include reducing sugar, sodium and fat across the company’s portfolio, as well as increasing whole grains, fruits and vegetables.

“As the world’s second-leading food and beverage business, we have a responsibility to help devise solutions to key global challenges where we can have the most impact,” said Indra Nooyi, chairman and chief executive officer. “Our strategy for long-term growth is an integral part of our ‘Performance with Purpose’ mission. In fact, we design our business plans to ensure that the work we do and the investments we make leave a positive impact on society.”

During 2009, PepsiCo said it achieved several goals, including:

• Achieving a 16% reduction in per-unit use of energy in beverage plants and a 7% reduction in snack plants in 2009 compared to a 2006 baseline;
• Introducing the first fully compostable SunChips bag, which is made with renewable plant-based materials;
• Reducing salt levels in Walkers crisps in the United Kingdom by an additional 10%;
• Entering into a $2.5 million, national, two-year effort with the Healthy Weight Commitment Foundation to reduce obesity, especially childhood obesity, by 2015 through the PepsiCo Foundation; and
• Reducing saturated fats in the United States by 50% in Lay’s and Ruffles brands since 2006.

Looking ahead, PepsiCo said it continues to make progress on each of its 47 global commitments.

In its products line, PepsiCo has targeted reducing the average amount of sodium per serving in key global food brands, in key countries, by 25% by 2015. By 2020, the company plans to reduce the average amount of saturated fat per serving in key global food brands by 15% and the average amount of added sugars per serving in key global beverage brands by 25%.

The company already is making good progress on several fronts.

“In Mexico, our business delivered 1.4 billion servings of whole grains through our Gamesa-Quaker snacks, oats and cereals last year,” PepsiCo said. “We expect to contribute an additional 22 million lbs of whole grain to the American diet in 2010 as we modify our process to retain more of the whole grain in Tostitos tortilla chips.”
In an effort to encourage people to make informed choices and live healthier, PepsiCo also has established several marketing commitments, including displaying calorie count and key nutrients on food and beverage packaging by 2012 and eliminating the direct sale of full-sugar soft drinks to primary and secondary schools around the world by 2012.

“In the U.S., PepsiCo will display total calorie counts on the front of all beverage containers up to and including 20-oz packages by February 2012,” the company said. “On beverage containers larger than 20 ounces, PepsiCo will display calories per 12-oz serving on the front of non-juice products, and calories per 8-oz serving on the front of juices and juice products.”

In addition, the company has pledged to advertise to children under 12 only products that meet the company’s global science-based nutrition standards.

“We’ve taken a deliberate stand on responsible marketing and advertising to children and joined a group of global food and beverage manufacturers to adopt a worldwide voluntary commitment to advertise to children under 12 only products that meet specific nutrition criteria,” PepsiCo said. “The policy is currently in effect for beverages worldwide and will become effective for all snacks and food globally by Jan. 1, 2011. PepsiCo has already achieved 96% compliance in 2009 in those countries where the company policy is in force, according to the global audit firm Accenture.”

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