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Pepsico Sustainability

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March 27,2021
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1.0 Introduction
The production of food and drinks uses up a lot of resources and has a notable impact on the environment, consumers
and the company itself. This impact is both negative and positive, therefore care has to be taken to keep the negative
impacts of the operations of food and drinks companies to be cut down to the barest minimum in order for companies in
the food and drinks industry to prove their sustainability.
The sustainability of the resources used by organizations determined the sustainability of the company/ business itself.
The awareness and push for sustainability has been growing in recent years with the increase in awareness of the
impact of human activities on the environment. This includes activities that make up the procedures and processes
involved in the production of food and drinks. Most companies have realized that their active involvement in the push
for sustainability of resources, environment and the company itself has an impact on the perspectives of its customers
and inevitably it’s bottom­line.
1.1 Purpose of the paper
This paper is put together to identify key sustainability issues in the food and drinks industry and analyzed how the
Pepsi Company has tackled such sustainability issues in the past and how they are currently tackling them, especially
with the current COVID­19 Pandemic. This paper will also attempt to make recommendations on ways in which the
company can better cater to these sustainability issues.
It also set out to better put in perspective sustainability issues and the role of businesses in achieving this sustainability
2.0 Background to the food and drinks industry
The global food and drinks industry in recent years has been increasingly concerned with sustainability and the COVID­
19 outbreak has intensified this concern.
The food and drink industry is one of the biggest manufacturing sectors globally as it meets a core need of man. It
integrates the world’s socio­economic and cultural mix and is necessary for economic development.
Several manufacturers have incorporated ecological social, and economic elements of sustainability into their
manufacturing process at various levels. Consumers are modifying their actions to incorporate sustainable and
ecological aspects into their buying decisions, which may demonstrate their concern for sustainability As a
consequence, certain customers' buying decisions are affected.
As a result, certain consumers inform their buying decisions not just from how well goods meet individual needs but
rather on how they impact the environment or population as a whole.
Sustainability in the Beverage Industry
A few studies have looked into the conditions that affect the purchasing of sustainable products from various angles:
The willingness to pay a premium price for sustainable products: sustainable products usually come at a premium.
Consumers have shown preference with the willingness to pay for organic beverages over their non­organic brands.
This may be because most of them associate the word “organic” with being chemical­free Thus, personal health
becomes a more important driver for consumer’s willingness to pay for organic food and drinks.
The use of sustainable packaging: Product packaging in the food and drinks industry has gone beyond serving a
functional role i.e. conserving quality and freshness of food and drinks. Consumers may consider the design, the brand
image, and the ease of unravelling the packaging in identifying and preferring a product, but most importantly. With the
trend in sustainable practices, consumers now seek sustainability/ recyclability/ environmental friendliness/
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decomposability of packaging.
The efficient distribution of products and fair trade: shortening the supply chain and distribution chain in order to reduce
carbon footprint has become a necessity in the food and beverages industry. Local sourcing and purchase of raw
materials efficient distribution are the latest trends for the companies in the industry. Fair Trade can be defined to
be:“An intervention for local farmers and wage earners restricted in their financial and/or social growth by the terms of
trade to somehow be compensated, fairly for their goods and services”. It promotes sustainability on the social and
economic fronts and has experienced growth in recent years. (Rodriguez & Sellers, 2021).
Unsustainability in the manufacture of food and drink products were found to be caused by the industrialization and
consequent globalization of agriculture and other food processing activities, the change of consumer consumption
preferences, modern food lifestyles which favors heavily processed food products; global food insecurity. (Reisch et al,
2013).
2.1 Background/ overview of PepsiCo
The first Pepsi was poured in the year 1896.
PepsiCo has become one of the world's largest food and drinks businesses, with operations in over 190 countries
worldwide.
Pepsi­Cola CEO Donald Kendall with Frito­Lay CEO Herman Lay integrated their firms in 1965. PepsiCo, one of the
earth's largest food and drinks firms, was born from their vision. PepsiCo products are enjoyed by consumers more
than one billion times a day in over 200 countries and territories globally. Frito­Lay, Gatorade, Pepsi­Cola, Quaker, and
Tropicana are among PepsiCo's integrated food and drink brands which produced over $67 billion dollars in sales in
2019. PepsiCo's product portfolio includes a wide range of foods and beverages, including 23 brands that generate
more than $1 billion each in estimated annual retail sales.
PepsiCo’s offerings include: Carbonated Soft Drinks, Coffee & Coffee Drinks, Energy Drinks, Fountain Drinks, Juice &
Juice Drinks, Sports Drinks, Teas, and Waters. (PepsiCo, 2021)
Vision: “To be the global leader in convenience foods and food and drinks by winning with purpose” (PepsiCo, 2021)
Mission: “To create more smiles with every sip and every bite”. (PepsiCo, 2021)
Sources
Similarity
ABOUT THE COMPANY ­ Pepsico
Their vision led to what quickly became one of the world's leading food and beverage companies: PepsiCo. PepsiCo
products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories
around the world.
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https://www.pepsico.com/about/about­the­company
Mission and Vision ­ PepsiCo
Mission & Vision ... Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose ... PepsiCo
Winning with Purpose Stronger Vision ... where it can have the greatest impact – Agriculture, Water, Packaging,
Products, Climate and People – to help build a more sustainable food system. ... PepsiCo 2021.
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https://www.pepsico.com/about/mission­and­vision
PepsiCo: Vision | Mission | Core Values | 2020 (Analysis ...
https://bstrategyhub.com/pepsico­vision­mission­core­values­a­complete­analysis/#:~:text=Pepsi's mission
statement is as,every sip and every bite.”
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