Packaging

PepsiCo Marks Progress Toward Sustainability Goals: Advancing on Water, Electricity and Fuel Conservation Initiatives

Friday 03. October 2008 - PepsiCo (NYSE:PEP) announced today that it has made significant progress toward its long-term environmental sustainability goals, which include reducing water consumption by 20 percent, electricity consumption by 20 percent and fuel consumption by 25 percent per unit of production by 2015 compared to 2006.

These goals are part of PepsiCo’s Performance with Purpose vision, the company’s commitment to delivering shareholder value while leaving a positive imprint on society.

“All of the credit for the progress we’ve made so far goes to the many talented people within PepsiCo who have found innovative ways to reduce our environmental footprint,” said Indra Nooyi, PepsiCo’s chairman and chief executive officer. “We still have much work to do, but these are important, positive steps in our long journey to constantly improve our stewardship of the environment.”

In order to attain these goals PepsiCo has launched a number of activities:

— Water — Reduce consumption by 20% — Across the world, PepsiCo has
saved nearly 1.5 billion gallons of water in 2007 compared to 2006.
PepsiCo is taking to scale a combination of new technology,
information sharing and employee initiatives that reduce water
consumption and increase re-use. In the U.S., the company is using a
proprietary air-rinse technology to clean newly manufactured bottles
with air instead of water in all Gatorade and Propel manufacturing
plants, saving almost 150 million gallons of water per year. Also, by
instituting comprehensive “water mapping” at manufacturing facilities
and increasing awareness of water conservation with associates, the
Walkers crisps business in the United Kingdom reduced the amount of
water used per kg of crisp by 42 percent between 2001 and 2007 and the
India beverage business has conserved over a half-billion gallons of
water in the last two years.

— Electricity — Reduce consumption by 20% — At the Tropicana facility
in Bradenton, Fla., the orange juice storage system was converted from
an ultra-low temperature freezer system to cool refrigeration that
preserves the juice’s freshness without freezing it. This transition
not only improved the fresh taste of Tropicana juice, it saved the
equivalent of electricity needed to power over 7,000 houses. At the
Quaker facility in Cedar Rapids, Iowa, the development of an
innovative milling process saves almost three million kilowatt hours
of electricity per year — the same amount used by 250 typical
American homes.

— Fuel — Reduce consumption by 25% — Alternative fuel sources are also
a major focus for PepsiCo. This year, the Frito-Lay manufacturing
facility in Modesto, Calif., inaugurated a solar concentrator field
made up of large curved mirrors that move with the position of the
sun, focusing the heat into tubes of glass filled with water. The
water is converted into steam, which helps heat the cooking oil used
to make SunChips. In addition, there are two U.S. PepsiCo
manufacturing facilities that use landfill gas, thereby reducing their
consumption of fossil source fuels. At several facilities in India,
PepsiCo uses local biomass material to run plants more efficiently
with less impact on the environment. Similarly, Frito-Lay is
installing a new biomass boiler in its Topeka, Kan., facility that
will use wood waste for fuel. In Mexico, the Sabritas business
conserved enough fuel in one year to serve 3,400 homes.