Royal Unibrew A/S announced the closing of the acquisition of Vrumona, the second largest soft drink company in the Netherlands, from Heineken. Vrumona is located near Utrecht and employs more than 300 people. The company has a strong portfolio of own brands and partner brands supporting the health and sustainability agenda.
Lars Jensen, CEO of Royal Unibrew A/S, states: “I am happy to welcome the dedicated and talented people from Vrumona to the Royal Unibrew family. We are eager to onboard the strong organisation and get started on the exiting journey to establish the company as a multi-beverage platform in Central Europe that will deliver organic earnings growth for years to come.”
As previously announced, Royal Unibrew A/S is acquiring 100 % of Vrumona at an enterprise value of EUR 300 million on a debt free basis. In 2022, Vrumona realised net revenue of EUR 200 million and an EBITDA of around EUR 25 million, resulting in an acquisition multiple (EV/EBITDA) of 12x.
The acquisition is expected to be EPS accretive in 2024, and ROIC on the acquisition is expected to exceed WACC within three years.
Vrumona fits very well into Royal Unibrew A/S’ operating model of strong local businesses with strong local brands with its solid positions in On-Trade and Off-Trade. The company has been a front runner in creating healthy and functional beverages for years for which reason the majority of its business is within the no/low sugar and calories segment. With the acquisition, Royal Unibrew A/S establish a new growth platform and expand its geographical footprint while the company also expand its longstanding relationship with PepsiCo as Vrumona is operating the full beverage portfolio from PepsiCo on a license agreement in a partnership dating back to 1949.
The Vrumona production facility in Bunnik includes seven lines with a current annual output of around 3.1 million hectoliters. The production facility is in a good condition; however, additional long-term investments are needed to improve efficiency as well as to expand capabilities and capacities. It is therefore expected that it will take some years before the platform is able to exploit its full organic growth potential.
On August 28, 1898 in New Bern, North Carolina, pharmacist Caleb Bradham renamed “Brad’s Drink,” his popular non-alcoholic digestif, “Pepsi-Cola.” 125 years later, Pepsi has become one of the world’s most recognisable brands and today, it officially ushers in its next era while honoring its storied legacy, as the brand’s new logo begins to roll out in stores in the US.
In honor of its 125th birthday, Pepsi will celebrate its iconic history where it has lived at the center of pop culture – in sports, music, and entertainment – and look ahead to the brand’s next 125 years. On August 28 the brand started the party by offering free Pepsi to everyone across the US, and over the course of the 125 days leading up to New Year’s Eve, the brand will launch 125 various types of programming including immersive events, social content moments and giveaways. Each touchpoint and its corresponding programming will revisit and reimagine the impactful and culture-driving moments fans have cherished throughout the brand’s rich history just as the new Pepsi logo, which pays homage to past brand looks, comes to life for consumers wherever they shop, dine, play and scroll, ushering in the next era of culture-defining moments.
125 years of trailblazing
Pepsi has been and continues to be a driver of cultural impact and relevance for 125 years. From having the only female professional skywriter draw Pepsi in the clouds to creating iconic moments with some of the biggest pop stars on the planet to making the Super Bowl Halftime Show the most watched 12 minutes of music; from initiating the now iconic ‘Pepsi Challenge’ to trailblazing the idea of lifestyle marketing with music videos as commercials; from creating flavours like Pepsi Wild Cherry and groundbreaking innovations like Nitro Pepsi, time and again Pepsi has found itself on the cutting edge of pop culture, embracing what fans love about culture. And now, Pepsi will pull back the curtain on its history for 125 days, complete with an immersive experience consumers will have to see – and taste – to believe.
Revolutionary strategic partnership between two global companies, with footprints extending from the farm gate to iconic foods and beverages, provides unprecedented and unique opportunity to expand regen ag at scale
ADM and PepsiCo announced a groundbreaking 7.5-year strategic commercial agreement to closely collaborate on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains. This strategic partnership is expected to reach up to 2 million acres by 2030, and represents a trailblazing effort by two global companies that share ambitious carbon reduction goals. The companies’ capabilities span the food and agriculture value chains, creating a unique, large-scale platform to support farmers’ transition to regenerative agriculture, while building their resilience to climate change.
The long-term agreement will initially enroll corn, soy and wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana and Nebraska, with the opportunity for future expansion, to increase visibility across the value chain and integrate a range of multi-year farmer-first regenerative agriculture initiatives, including cover crops, reduced tillage, nutrient management, diverse rotations, and responsible pesticide use. The companies plan to share resources and collaborate to create value throughout the supply chain by providing participants with technical and financial assistance, offering access to peer regenerative farming networks, hosting educational field days, and tracking results using trusted, third-party measurement systems.
Reaching the strategic partnership’s goals could eliminate 1.4 million metric tons of greenhouse gasses – equivalent to the amount of electricity used to power 275,000 homes per year – at the farm level, while creating meaningful shared value directly for farmers.
“Building a better food system is essential to the future health of the earth and all of us,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. “At its core, PepsiCo is an agricultural company, working to spread regenerative agriculture practices that restore the earth and reduce carbon emissions to 7 million acres by 2030. This partnership with ADM marks a sea change in how PepsiCo engages with strategic partners and is expected to help us reach almost one-third of that goal. By enabling greater collaboration through strategic partnerships like this one, we can strengthen the livelihoods and resilience of the farmers we work with, while building a more sustainable future together.”
“Sustainability is fundamental to ADM: Our growth strategy is underpinned by demand for more sustainable products, and our culture compels us to act,” said ADM Chief Sustainability Officer Alison Taylor. “Last year, we expanded on our Strive 35 sustainability goals with a commitment to reduce our Scope 3 emissions by 25 % by 2035, and expanding regenerative agriculture practices – as we have with our recent strategic partnerships with the National Fish and Wildlife Foundation and Farmers Business Network – will be key to reaching that goal. Today’s announcement is a major step forward, as we work with a partner whose values align with our own to scale up regenerative agriculture in a way few other companies can. We’re excited to take the next big step in reducing carbon and making our entire food system more sustainable.”
pep+ is PepsiCo’s strategic, end-to-end business transformation with sustainability and human capital at the center of how the company will create growth and value. As part of those ambitions, the company is working to spread regenerative practices across 7 million acres of land by 2030 — an area approximately equal to its entire agricultural footprint – and striving to achieve net-zero emissions by 2040.
ADM’s Strive 35 sustainability goals include reducing absolute greenhouse gas emissions by 25 %, energy intensity by 15 %, water intensity by 10 %, and achieving a 90 % landfill diversion rate by 2035 against a 2019 baseline. In 2021, ADM additionally committed to a new, aggressive environmental goal to reduce Scope 3 greenhouse gas emissions 25 % by 2035 while accelerating its target date to achieve a completely deforestation-free supply chain from 2030 to 2025. The company has also committed to work with the Science Based Targets Initiative with the aim of obtaining approval of its climate targets and alignment with ambitious global goals to limit rising temperatures to 1.5 degrees Celsius.
PepsiCo Beverages North America (PBNA) announced a USD1.5 million grant to the Water Replenishment District of Southern California (WRD), the largest groundwater agency in the state of California, to help manage and protect local groundwater resources to more than four million residents.
“Partnering with the Water Replenishment District of Southern California will not only help enable long-term, sustainable water security for local communities who depend on an accessible and reliable supply of clean, safe water,” said Johannes Evenblij, President of West Division at PepsiCo Beverages North America, “but it will also be critical in the advancement our pep+ (PepsiCo Positive) Net Water Positive ambition to reduce absolute water use and replenish back into the local watershed more than 100% of the water we use. As a food and beverage company, we’re acutely aware of the critical role water plays in the southern California ecosystem, and our community.”
The partnership will improve drought resiliency and pilot WRD’s first inland injection well for utilization of in-ground storage. When complete, the project will store an average of 325,851 gallons of water per year for municipal and indirect use, drought resiliency and mitigation.
“The Water Replenishment District is proud to be the first public agency to receive a water sustainability grant from PepsiCo,” said Water Replenishment District Board President John D.S. Allen. “This grant will help build our region’s drought resilience for years to come. The WRD Board of Directors commend and applaud PepsiCo for their commitment to protecting our watershed.”
PepsiCo is focused on improving water-use efficiency, local replenishment in water-scarce areas, public education, advocacy for smart water policies, and adoption of best practices with community partners. Example sustainable PepsiCo partnerships include:
Arbor Day Foundation: PBNA and PepsiCo Foods North America (PFNA) supported ADF’s replanting of two million trees in the burn scars of the Carr and Camp Fire wildfires that devastated Northern California in 2018.
California Water Action Collaborative: PBNA is part of CWAC, a coalition of industry, nonprofit, and governmental organizations investing in efforts throughout California that yield positive return for water quality and quantity.
The Nature Conservancy: PBNA collaborates with TNC as part of the Salt and Verde Alliance, a partnership that brings together companies, farmers, communities, and other organizations to help protect the Salt and Verde watersheds of the arid western United States.
PepsiCo, Inc. announced the establishment of the company’s first two Digital Hubs in North America and Europe, with plans to expand to more locations in the future. These Hubs, located in Dallas and Barcelona, are expected to create more than 500 new, high-caliber data and digital jobs over the next three years, bringing additional opportunity to the regions. By creating state-of-the-art spaces designed for real-time collaboration, the talent and capabilities housed in these Digital Hubs will drive PepsiCo’s digitalization agenda and create a strong, global digital delivery network.
As one of the first major consumer packaged goods (CPG) companies to establish a robust Digital Hub in North America, the Dallas-based Hub will support the development of global solutions with a primary focus on meeting the needs of the company’s North America-based businesses: PepsiCo Foods North America and PepsiCo Beverages North America. The Hub in Barcelona will serve as a Center of Excellence for PepsiCo Global Digitalization priority programs. Together, the Hubs will accelerate the way PepsiCo develops, centralizes and deploys critical digital capabilities, such as near instant, holistic, predictive analytics and ecosystem engagement across our global operations.
“Our Digital Hubs will support PepsiCo’s efforts to be an even Faster, Stronger and Better Company,” said Athina Kanioura, Chief Strategy & Transformation Officer, PepsiCo. “By creating an agile and dedicated environment where innovation will thrive, our talent will have the opportunity to lead work that will reach global scale and have a significant impact for PepsiCo for many years to come.”
These capabilities move the company closer to a future vision where customers will have improved access to real-time sales and inventory data; consumers will benefit from consistent product availability at the right place, right time and right price; and employees will utilize predictive decision-making tools, giving them the ability to manage more complexity with enhanced efficiency.
From leveraging AI to ensure perfectly consistent Cheetos every time to optimizing water consumption and preventing leaks in manufacturing facilities, PepsiCo has been at the forefront of digital innovation across its global operations. PepsiCo’s Digital Hubs will greatly influence the way the organization reinvents planning, making, moving, selling and delivering products.
Kanioura added, “We strategically chose Barcelona and Dallas because they are truly innovative cities with topnotch talent, world-class education systems and fully-developed regional infrastructures. Coming into PepsiCo one year ago, I was extremely impressed with the caliber of existing data and digital talent within a CPG, and I’m excited to harness that power to grow our teams in North America and Europe.”
Following PepsiCo’s introduction of Pep+, a policy that aims to improve the company’s agricultural footprint by addressing its packaging processes and greenhouse gas emissions;
Holly Inglis, Beverages Analyst at GlobalData, a leading data and analytics company, offers her view:
“Pep+ will keep PepsiCo ahead of the competition amid consumers’ ever-increasing demand for sustainability. The policy will be popular with the 70 %* of global consumers that stated they prefer ingredients that are sourced sustainably and ethically.
“GlobalData notes that consumers are yearning for drinks that are both better for them and better for the planet. Therefore, focusing on beverages that are thought of as ‘healthy’ and ‘sustainable’ such as dairy alternatives, flavoured waters and iced teas may be a good bet in the long term given their historical popularity in a number of markets across the globe. If PepsiCo continues to utilize these categories like Lipton, in combination with the new policies, the company will be able to get a big leg up on its competitors.
“It is clear that consumers are watching brands’ actions closely, as well as changing their purchasing habits based on how brands respond to the environmental crisis. GlobalData’s Q1 2021 global consumer survey reports that 33 %** of people worldwide like to see news about a brand’s sustainability initiatives.”
*GlobalData’s Q2-21 Consumer Survey – Global – Combined responses: “somewhat appealing” and ‘very appealing” for the question “how appealing do you find the following? Sustainably/ethically sourced ingredients” **GlobalData’s Q1-21 Consumer Survey – Global
PepsiCo, Inc. introduced pep+ (pep Positive), a strategic end-to-end transformation with sustainability at the center of how the company will create growth and value by operating within planetary boundaries and inspiring positive change for the planet and people. pep+ will guide how PepsiCo will transform its business operations: from sourcing ingredients and making and selling its products in a more sustainable way, to leveraging its more than one billion connections with consumers each day to take sustainability mainstream and engage people to make choices that are better for themselves and the planet.
Ramon Laguarta (Photo: Amanda Taraska)
“pep+ is the future of our company – a fundamental transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center. It reflects a new business reality, where consumers are becoming more interested in the future of the planet and society,” said Ramon Laguarta, PepsiCo’s Chairman and CEO. “pep+ will change our brands and how they win in the market. For example, imagine Lay’s will start with a potato grown sustainably on a regenerative field, and then be cooked and delivered from a Net-Zero and Net Water Positive supply chain, sold in a bio-compostable bag, with the lowest sodium levels in the market. That’s a positive choice. That’s the best tasting, #1 potato chip of the future. That’s how pep+ will be better for people, for the planet, and for our business. Now, imagine the scale and impact when applied to all 23 of our billion-dollar brands.”
pep+ drives action and progress across three key pillars, bringing together a number of industry-leading 2030 goals under a comprehensive framework:
Positive Agriculture: PepsiCo is working to spread regenerative practices to restore the Earth across land equal to the company’s entire agricultural footprint (approximately 7 million acres), sustainably source key crops and ingredients, and improve the livelihoods of more than 250,000 people in its agricultural supply chain.
Positive Value Chain: PepsiCo will help build a circular and inclusive value chain through actions to:
Achieve Net-Zero emissions by 2040;
Become Net Water Positive by 2030; and
Introduce more sustainable packaging into the value chain.
PepsiCo announced new goals to cut virgin plastic per serving by 50 % across its global food & beverage portfolio by 20301, using 50 % recycled content in its plastic packaging and scaling the SodaStream business globally, an innovative platform that almost entirely eliminates the need for beverage packaging, among other levers.
The company will also progress its more than $570 million diversity, equity and inclusion journey; and
introduced a new global workforce volunteering program, One Smile at a Time, to encourage, support and empower each one of its 291,000 employees to make positive impacts in their local communities.
Positive Choices: PepsiCo continues to evolve its portfolio of food & beverage products so that they are better for the planet and people, including by:
Incorporating more diverse ingredients in both new and existing food products that are better for the planet and/or deliver nutritional benefits, prioritizing chickpeas, plant-based proteins and whole grains;
Expanding its position in the nuts & seeds category, where PepsiCo is already the global branded leader, including leadership positions in Mexico, China and several Western European markets;
Accelerating its reduction of added sugars and sodium through the use of science-based targets across its portfolio and cooking its food offerings with healthier oils; and
Continuing to scale new business models that require little or no single-use packaging, including its global SodaStream business – an icon of a Positive Choice and the largest sparkling water brand in the world by volume. SodaStream, already sold in more than 40 countries, is bringing PepsiCo flavor options like Pepsi Zero Sugar, Lipton and bubly to 23 markets, and its new SodaStream Professional platform will expand into functional beverages and reach more than 10 additional markets by the end of 2022, part of the brand’s effort to help consumers avoid more than 200 billion plastic bottles by 2030.
“pep+ directly links the future of our business with the future of our planet, for the benefit of both – from how we source ingredients and make and sell our products; to how we inspire consumers through our iconic brands to make better choices for themselves and the planet; to how we support communities and improve livelihoods throughout our supply chain,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. “Take SodaStream, for example. By rapidly expanding the SodaStream ecosystem, we are meeting the needs of consumers at home, away from home, and on-the-go. At the same time, we are also offering consumers positive choices that use less plastic, create fewer emissions, and are better for people. pep+ is our roadmap to create the food and drinks people love in a way that helps build the sustainable future we all must have.”
The company’s brands across its food & beverage portfolio are accelerating their efforts to realize PepsiCo’s sustainable packaging vision and leveraging their influence to educate consumers on recycling and the planetary impacts of their choices.
11 European markets are moving key Pepsi-branded2 products to 100 % rPET bottles by 2022. PepsiCo estimates that shifting to a 100 % rPET bottle will lower GHG emissions by approximately 30 % per bottle.
In the U.S., all Pepsi-branded products will be converted to 100 % rPET bottles by 2030, with Pepsi Zero Sugar beginning to be sold in 100 % rPET bottles by 2022. The brand is celebrating this important move to sustainable packaging with a new consumer-centric platform leveraging fall football and driving recycling awareness, education and advocacy, which are critical because rPET availability depends on consumers’ commitment to recycling.
PepsiCo has been investing in breakthrough food packaging technology and is now introducing a fully compostable bag made with plant-based materials. Starting with Off The Eaten Path, one of Frito-Lay’s plant-based brands, this industrially compostable packaging will be available to consumers in the U.S. at Whole Foods stores beginning this month. Notably, the company also announced today that it is willing to work with other companies to license the same technology at no cost given the importance of creating a circular food packaging system.
1Against 2020 baseline. 2Includes Pepsi, Pepsi MAX, Pepsi MAX Lime, Pepsi MAX without caffeine, Pepsi Light, Pepsi Light without caffeine.
PepsiCo, Inc. announced that it has entered into an agreement with PAI Partners to sell Tropicana, Naked and other select juice brands across North America, and an irrevocable option to sell certain juice businesses in Europe, which will result in combined pre-tax cash proceeds of approximately $3.3 billion while retaining a 39 % non-controlling interest in a newly formed joint venture. PAI, a leading private equity firm with strong experience in the food and beverage space, will be the majority shareholder of the transferred business, with PepsiCo retaining exclusive U.S. distribution rights to the portfolio of brands in its best-in-class, chilled Direct Store Delivery for small-format and foodservice channels.
“This joint venture with PAI enables us to realise significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” said PepsiCo Chairman and CEO Ramon Laguarta. “In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet.”
“We are delighted to bring these storied beverage brands into the PAI portfolio through another partnership with a leading global food and beverage company. We believe there is great growth potential to be realised through investments in product innovation, expansion into adjacent categories, and enhanced scale in branded juice drinks and other chilled categories,” said Frédéric Stévenin, a Managing Partner at PAI. “We are also thrilled that PepsiCo will remain involved as our partner in the joint venture as we execute our plans to drive the future success of these brands.”
These juice businesses delivered approximately $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo’s overall operating margin in 2020. PepsiCo expects to use the proceeds from the sale of these assets primarily to strengthen its balance sheet and to make organic investments in the business. The transaction is expected to close in late 2021 or early 2022, subject to customary conditions, including works council consultations and regulatory approvals.
About PAI Partners PAI Partners is a pre-eminent private equity firm, investing in market-leading companies across the globe. It has significant experience in the food and beverage space and is currently invested in Froneri, the world’s #2 ice cream manufacturer, and Ecotone, a leader in healthy and sustainable food. It manages around €15 billion of dedicated buyout funds and, since 1994, has completed 84 investments in 11 countries, representing over €65 billion in transaction value. PAI has built an outstanding track record through partnering with ambitious management teams where its unique perspective, unrivalled sector experience and long-term vision enable companies to pursue their full potential – and push beyond.
PepsiCo is shaking up the cocktail mixer category with the launch of Neon Zebra, a new line of non-alcoholic cocktail mixers with a vibrant personality that offers a shortcut to great-tasting-cocktails in seconds. A modern alternative to complicated cocktail recipes or large format cocktail mixers, each 7.5oz mini-can of Neon Zebra mixed with your spirit of choice, makes two tasty cocktails without the fuss. Made with real juice and no artificial sweeteners, Neon Zebra mixers don’t compromise on taste. These non-alcoholic cocktail mixers come in four flavours: Margarita Mix, Strawberry Daiquiri Mix, Mojito Mix and Whiskey Sour Mix.
As a leader in beverage innovation, PepsiCo is entering the growing cocktail mixers category at a time when today’s homebound consumers are looking for easy-to-make cocktails. In fact, the cocktail mixers category (including total mixers, ginger beer, club soda, and tonics) saw 28 % growth in 2020 and is worth more than $858MM.1 Cocktail culture is taking hold at home, and people are looking for innovations that fit their lifestyle.
“With at-home cocktail consumption on the rise, we saw an opportunity to build and disrupt this fast-growing category with a product that meets consumers’ needs for convenience – to cut out time and mess without compromising on quality and taste,” said Emily Silver, VP of Innovation & Capabilities, PepsiCo Beverages North America. “Neon Zebra adds a new level of personality in the cocktail mixer category with its bold flavours and colours and easy-to-use, recyclable mini-can format. We’re thrilled with this new venture and all of the opportunities to come in the mixology category.”
With Neon Zebra, making classic cocktails is wildly easy, whether you’re an amateur mixologist or just a fan of great cocktails. Simply add 1 can of Neon Zebra + 3 oz. of liquor = 2 #WildlyEasy cocktails. Serve them over ice, top with your favorite garnish (or don’t!) and cheers to cocktail-making made easy.
Neon Zebra cocktail mixers come in four wildly popular flavours:
Margarita Mix: Paired with your favourite tequila, it’s tangy and bold with a flavourful citrus kick of lime.
Strawberry Daiquiri Mix: Sweet & fruity strawberry flavour with a hint of lime. The perfect balance with your favourite rum.
Mojito Mix: Tasty lime and the light sweetness of real sugar makes a refreshing mojito, mixed with your rum of choice.
Whiskey Sour Mix: Sour, but not too tart, for a balanced citrus flavour your whiskey will appreciate.
Neon Zebra launches in sustainable, recyclable packaging via aluminum cans and paperboard 6-packs. Neon Zebra started to roll out in the US across retail and online stores in March for an MSRP of $6.99-$7.99 for six 7.5FL oz cans.
1MULOC, 52 weeks, 2020; includes Total Mixers, Ginger Beer, Club Soda and Tonics
Made with water, fruit juice, and electrolytes for taste, Frutly provides teens with flavourful hydration
PepsiCo has released one of its newest product innovations, Frutly, a hydrating juice water designed with teens in mind. A newcomer to the juice aisle, Frutly is made with water, fruit juice, and electrolytes for taste to provide flavourful hydration and a good source of vitamins C and E.
Frutly was created in response to a clear whitespace among juice brands, aiming to reinvigorate the category by addressing both parents’ desires for more nutritious beverage options for their families and the needs of teens who have outgrown the juice boxes and pouches of their childhood. In fact, 56 percent of people leaving the ambient juice category blame poor nutritional factors like sugar, calories, and artificial sweeteners for pushing them away1. Frutly fills this gap, delivering refreshing taste, nutritional benefits and hydration without added sugar or artificial sweeteners.
“With more meals being enjoyed at home these days, we’ve learned that parents are keeping their pantries filled with products they feel good about giving their families, but also that their teens want. As a father of three, I know how challenging it can be to strike that balance,” says Anup Shah, vice president and chief marketing officer, Juice Brands, PepsiCo Beverages North America. “Having hydrating drinks available that are also shelf-stable remains essential as we all continue to work and learn from home, and Frutly is well positioned to serve as a delicious and nutritious option that both teens and their parents can agree on.”
Available in three flavours — Strawberry Kiwi, Fruit Punch, and Apple Grape – Frutly has 60 calories per 12-fluid-ounce serving and is now on grocery store shelves in the U.S. in single flavour four-packs.
1According to a 2019 IRI study for PepsiCo.
About Frutly: Launched in early 2021, Frutly is a new brand of juice beverages from PepsiCo. Frutly is made with water, fruit juice, and electrolytes for taste to provide flavorful hydration and a good source of vitamins C and E. Frutly contains no added sugar or artificial sweeteners, offering delicious taste for teens in a product parents can feel good about. Frutly is available in 12-fluid-ounce bottles in three flavors, Strawberry Kiwi, Fruit Punch, and Apple Grape. Frutly is now on shelves nationwide.
PepsiCo and Beyond Meat are joining forces in a new partnership. The goal? Dreaming up a range of snacks and beverages, all made from plant-based protein.
Plant-based proteins are playing an increasingly vital role in modern diets — they’re nutrient-rich and far more sustainable than meat.
Now PepsiCo and Beyond Meat are teaming up to launch The PLANeT Partnership, tapping into growing consumer demand for plant-based proteins that are better for the planet.
Through the PLANeT Partnership, the two companies will develop, produce and market snacks and beverages made from plant-based protein — bringing together Beyond Meat’s innovation expertise with PepsiCo’s marketing and commercial capabilities.
“We look forward to combining their unparalleled expertise with our world-class capabilities in brand-building, consumer insights and distribution,” says Ram Krishnan, PepsiCo Global Chief Commercial Officer.
For PepsiCo, the partnership represents an exciting next step in the company’s ongoing commitment to expanding its portfolio of positive choices for consumers and the planet. Among PepsiCo’s longstanding efforts: doubling down on sustainably sourced ingredients, regenerative agriculture, carbon-emission reduction and other key measures.
Numerous studies have extolled the benefits of plant-based diets, and Krishnan describes Beyond Meat as “a cutting-edge innovator in this rapidly growing category.” The El Segundo, California-based company was founded in 2009 with the goal of creating plant-based products that mimic meat’s taste and texture, with a focus on simple ingredients and no GMOs or bioengineering. Fast forward to 2021, Beyond Meat products are available at approximately 122,000 locations in more than 80 countries.
“With PepsiCo’s unmatched reach and distribution, we’ll be able to accelerate bringing these products to markets around the world as we provide more consumers with the nutritional and environmental benefits of plant-based protein,” says Ethan Brown, Beyond Meat Founder and CEO.
As Krishnan notes, it represents “a new frontier in our efforts to build a more sustainable food system.”
A Perfect Match Between Two Brands Shaking Up the Sparkling Water Category
SodaStream, the world’s leading sparkling water brand1, announces the upcoming launch of bubly drops, marking the first partnership for SodaStream in North America since joining PepsiCo. The new collaboration brings the beloved bubly™ brand’s bright flavours and bold personality to the SodaStream platform, enabling consumers to create their ideal customized beverages at home.
bubly drops will officially be available starting January 2021, but consumers can get their hands on an early release of the product beginning November 1st as part of a limited edition SodaStream Sparkling Water Maker Kit available at SodaStream.com and select online retailers. bubly drops for SodaStream contain no calories or sweeteners and will launch in six refreshing flavours bubly fans know and love: grapefruitbubly™, blackberrybubly™, limebubly™, strawberrybubly™, mangobubly™, and cherrybubly™.
“bubly drops are the perfect extension to our flavour offerings, tapping into one of the most rapidly growing segments of the sparkling beverage market: unsweetened flavoured sparkling water,” said Eyal Shohat, CEO of SodaStream. “The launch of bubly drops for SodaStream marks an exciting partnership between our two brands and reinforces our commitment to bringing consumers their preferred beverage choices that are better for them and better for the planet.”
“We’ve developed an incredible fan base, and by continuing to lean into the bubly brand’s playful personality, have quickly become one of the largest sparkling water brands in the category,” said Stacy Taffet, Vice President Water Portfolio for PepsiCo. “We are thrilled to join forces with SodaStream and bring our delicious flavour offerings to their incredible at home platform. In doing so, bubly will be the first sparkling water brand to ever be available in these two formats.”
bubly drops for SodaStream were developed through a collaborative effort between the PepsiCo and SodaStream research and development teams to ensure the amazing, high-quality taste consumers expect from bubly.
SodaStream and bubly share brand values rooted in playfulness and social good. With the launch of bubly drops for SodaStream, the two brands will offer consumers a fun, healthy and sustainable sparkling water option.
About bubly bubly is shaking up the sparkling water category with refreshing and delicious flavours, an upbeat and playful sense of humor, all while keeping it real with no artificial flavours, no sweeteners, and no calories. Each flavor of bubly sparkling water features bright, bold packaging, unique smiles for every flavour, and comes with its own witty greeting on the tab and personal messages on the can for maximum enjoyment and smiles. bubly sparkling water is available in fourteen bright flavours: cherrybubly, orangebubly, mangobubly, pineapplebubly, limebubly, applebubly, watermelonbubly, blackberrybubly, grapefruitbubly, strawberrybubly, raspberrybubly, peachbubly, cranberrybubly and lemonbubly. no calories. no sweeteners. all smiles.™
1Total global volumes taken from GlobalData’s Global Packaged Water Report 2018, compared with SodaStream company information.
Britvic announced it has reached agreement with PepsiCo for a new and exclusive 20-year franchise bottling agreement for the production, distribution, marketing and sales of its carbonated soft drink brands – including Pepsi, 7UP and Mountain Dew – in Great Britain. The new agreement extends the relationship, which commenced in 1987, to 31 December 2040 and includes the Rockstar energy brand, for which Britvic will take responsibility from 1 November this year.
Britvic also announced its intent for all plastic bottles in GB to be made from 100 % recycled plastic (rPET) by the end of 2022 – three years earlier than originally planned, and ahead of the previous target of 50 %. This will cover the entire GB portfolio of Britvic-owned and PepsiCo brands, and demonstrates both companies’ commitment to sustainability and to a healthier planet.
PepsiCo, Inc. published its 2019 sustainability report, highlighting progress toward its sustainability goals and reaffirming the company’s agenda to help build a more sustainable food system.
“Today’s global environmental and societal pressures are bringing into sharp focus the need for systemic change,” said Ramon Laguarta, PepsiCo’s CEO and Chairman. “These challenges not only require deeper commitment from the private sector, they also require demonstrated and sustained action. As a global food and beverage leader, we have a responsibility to use our scale and influence to help tackle long-term challenges, including addressing the threats to our food system which have been further strained by the unfolding pandemic. We’re making significant progress that I’m very proud of. We know it will take even more, however. From how we grow food and make products, to inspiring positive change – we are committed to help build a better future for people and the planet.”
The 2019 Sustainability Report shares progress across the priority areas where PepsiCo believes it can have the most meaningful impact: agriculture, water, climate, packaging, products, and people. Highlights include:
Delivering Safe Water Access: PepsiCo believes water is a human right and its philanthropic arm The PepsiCo Foundation has helped more than 44 million people in underserved communities around the world gain access to safe water through distribution, purification and conservation programs since 2006, far surpassing its goal to reach 25 million by 2025. Building on the success of these programs, PepsiCo has set an ambitious new target to reach a total of 100 million people by 2030 and will focus its near-term work on water distribution, sanitation, and hygiene programs to bolster public health in the wake of COVID-19.
Sourcing Ingredients through More Sustainable and Resilient Agriculture: On farms around the world, PepsiCo is working to improve farmer livelihoods, while raising standards for efficient resource use, environmental consciousness, and worker rights. Through the company’s Sustainable Farming Program (SFP), in 2019, nearly 80 % of PepsiCo’s farmer-sourced agricultural raw materials, like potatoes, whole corn, oranges, and oats were verified as sustainably sourced, meeting the SFP’s robust criteria, progress towards meeting its goal to reach 100 % by the end of 2020.
Accelerating Climate Action: PepsiCo reduced its absolute GHG emissions by 6 % across its global value chain in 2019. In April 2020, PepsiCo affirmed its plans to accelerate action on climate change by signing the UN’s Business Ambition for 1.5°C pledge, joining other leading companies in committing to set science-based emissions-reduction targets across its entire value chain, aimed at limiting global warming to 1.5°C, while also developing a long-term strategy for achieving net-zero emissions by 2050. This builds on PepsiCo’s announcement earlier in the year that the company is shifting to 100 % renewable electricity through a diverse portfolio of solutions for direct operations in the U.S., its largest market. Nine countries in PepsiCo’s European business operations already use 100 % of their electricity from renewable sources.
“As we look to the decade ahead, global efforts to mitigate climate change and support a more sustainable and inclusive future are more crucial than ever,” said Simon Lowden, PepsiCo’s Chief Sustainability Officer. “From providing access to safe water in underserved communities, to working with farmers to grow crops more sustainably, to innovating around packaging, we remain focused on our long-term agenda. It will require agility, collective action and collaboration, and as we think about our approach, we’re determined to embrace an important lesson of COVID-19: The world can mobilize quickly when working together toward a shared goal. We know building a more resilient food system is possible, and we’ll continue working with partners around the world to catalyze change for a better tomorrow.”
The report and downloadable assets are available here.
Following the news that PepsiCo is set to buy Rockstar Energy Beverages; Andy Morton, Drinks Deputy Editor at GlobalData, a leading data and analytics company, offers his view:
“This agreement will fill a gaping hole in PepsiCo’s beverage portfolio just as The Coca-Cola Co looked to have the drop over its historic rival in global energy drinks.
“In recent years, Coca-Cola has taken a minority stake in Monster Energy owner Monster Beverage Corp and launched its own energy drink under the Coca-Cola brand. The moves targeted fast growth in energy that has stolen share from carbonated sodas such as Coke and Pepsi and threatened the traditional business strategies of the larger beverage multinationals.
“As Coca-Cola cosied up to Monster, PepsiCo’s lack of action in energy became more apparent. Energy offerings from PepsiCo so far have largely been from its Mountain Dew soft drinks brand, with niche consumers such as gamers served with the likes of Amp Game Fuel and athletes with a caffeinated version of Gatorade called Bolt24.
“The Rockstar acquisition hands PepsiCo an off-the-peg solution to its lack of a bespoke energy brand while offering new angles for those already in its portfolio. According to GlobalData, Rockstar accounts for just 4 % of the global energy drinks market by value, but the company offers a platform to bigger things.
“The purchase also sounds the starting gun for a new frontier in PepsiCo and Coca-Cola’s beverage war as the world’s biggest soda companies finally get serious in energy.
“For years, the global energy drinks market was dominated by the upstart Red Bull. Recently, however, Monster – buoyed by a sea of cash from domination in the US – has closed the gap by stretching its tentacles beyond the country, with exports boosted by a distribution agreement with Coca-Cola. With Rockstar now set to join PepsiCo, it too could become a global player and expand beyond its current few dozen export markets.
“There’s much to play for – according to GlobalData, the global energy drinks market grew by 8.9 % in 2018, making it the fastest-growing category in non-alcoholic beverages. That growth was driven by Asia (+18.7 %), Eastern Europe (+16.9 %) and Africa (+14.0 %). China, meanwhile, became the world’s biggest energy drinks market after overtaking the US, signalling that the real action in the category lies beyond PepsiCo and Coca-Cola’s developed markets.
“Prepare to be buzzed – the energy drinks showdown is going global.”
PepsiCo, Inc. announced that it has entered into an agreement to acquire Rockstar Energy Beverages (“Rockstar”), the popular energy drink maker, for $3.85 billion.
Ramon Laguarta, PepsiCo Chairman and CEO (Photo: PepsiCo)
“As we work to be more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo’s capabilities to both accelerate Rockstar’s performance and unlock our ability to expand in the category with existing brands such as Mountain Dew,” said PepsiCo Chairman and CEO, Ramon Laguarta. “Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.”
Rockstar, founded in 2001, produces beverages that are designed for those who lead active lifestyles from athletes to rock stars. Rockstar products are available in over 30 flavors at convenience and grocery outlets in over 30 countries. PepsiCo has had a distribution agreement with Rockstar in North America since 2009. In addition to Rockstar, PepsiCo’s energy portfolio includes Mountain Dew’s Kickstart, GameFuel, and AMP.
“We have had a strong partnership with PepsiCo for the last decade, and I’m happy to take that to the next level and join forces as one company,” said Russ Weiner, Rockstar’s founder and creator of the world’s first 16oz energy drink. “PepsiCo shares our competitive spirit and will invest in growing our brand even further. I’m proud of what we built and how we’ve changed the game in the energy space.”
PepsiCo has also entered into an agreement, which will provide approximately $0.7 billion of payments related to future tax benefits associated with the transaction, payable over up to 15 years. PepsiCo does not expect the transaction to be material to its revenue or earnings per share in 2020. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2020.
Centerview Partners LLC acted as financial advisor to PepsiCo. Gibson, Dunn & Crutcher LLP acted as lead counsel to PepsiCo, and Davis Polk & Wardwell LLP as U.S. tax and antitrust counsel. Goldman Sachs & Co. LLC acted as financial advisor to Rockstar, with King & Spalding acting as Rockstar’s legal counsel.
With mousesports and Prime League Rockstar Energy goes all in on e-sports in 2020
Rockstar Energy will intensify on being “Louder. Harder. Drüber.” in 2020: for years the energy drink brand has been very active in the gaming scene and this year Rockstar Energy is stirring up the strongly growing e-sports sector with the global team sponsoring of mousesports and the league sponsoring of Prime League. Gaming-affine fans can count on energetic activations in the style of Rockstar Energy.
As of now Rockstar Energy kicks off the premium partnership with the German #1 e-sports team mousesports (“mouz”). mousesports are internationally successful and currently #2 in the Counter-Strike world ranking. The team stands for top performances in Counter-Strike, League of Legends and many other games.
Just as exciting is the cooperation of Rockstar Energy as official advertising partner with the #1 e-sports Liga Prime League for “League of Legends” in the DACH region. Prime League is the official circuit of the American computer game developer Riot Games for Germany, Austria and Switzerland and the largest tournament platform for the #1 gaming title “League of Legends”1 in this region. mousesports also performs in the Prime League and could celebrate its triumph in 2019.
With these powerful partnerships in the e-sports sector, Rockstar Energy is taking its gaming activation to new dimensions and is focusing especially on areas relevant to energy. “The partnerships with mousesports and the Prime League provide a real added value for our target group, as they meet their interests exactly”, says Carl Windfuhr, Commercial Director Beverages PepsiCo. “Therefore we are taking Rockstar Energy’s success story to a new level that our retail partners will also benefit from”.
Rockstar Energy will be represented as jersey sponsor for all the teams of mousesports as well as through instream placements. At Prime League, Rockstar Energy will be involved in instream and in the Top 5 Plays, providing players and fans alike with the necessary Rockstar Energy kick for a legendary performance. In addition to multi-packs and on-pack promotions with great prizes Rockstar Energy is taking it up to the max: e-sports fans can expect meet & greets with mouz, cool raffles and exciting content. Another highlight is the Prime League final during Gamescom 2020, taking place in Cologne at the end of August.
Striking communication measures support the new cooperations with mousesports and the Prime League. With social media activities in particular – such as on the live gaming platform Twitch – the brand is addressing the young and gaming-affine target group in its unique “Louder. Harder. Drüber.” style. Other digital measures and PoS campaigns are also being carried out to position Rockstar Energy even more strongly as the brand for the gaming scene.
PepsiCo, Inc. announced that LIFEWTR® will be packaged in 100 % rPET (recycled polyethylene terephthalate), and bubly™ will no longer be packaged in plastic. The company’s AQUAFINA® water brand will also offer aluminum can packaging in U.S. food service outlets, while the brand tests the move in retail. The changes, which all go into effect next year, are expected to eliminate more than 8,000 metric tons of virgin plastic and approximately 11,000 metric tons of greenhouse gas emissions, representing the latest ambitious steps in the company’s sustainability journey and pursuit of a circular economy for plastics. They reinforce and advance PepsiCo’s goals to by 2025 make 100 % of its packaging recyclable, compostable, or biodegradable and use 25 % recycled plastic content in all its plastic packaging.
“Tackling plastic waste is one of my top priorities and I take this challenge personally,” PepsiCo Chairman and CEO Ramon Laguarta. “As one of the world’s leading food and beverage companies, we recognize the significant role PepsiCo can play in helping to change the way society makes, uses, and disposes of plastics. We are doing our part to address the issue head on by reducing, recycling and reinventing our packaging to make it more sustainable, and we won’t stop until we live in a world where plastics are renewed and reused.”
Naked Juice, a category leader in premium fruit and veggie juices and smoothies, has been working since 2009 to ensure its bottles are made of 100 % rPET and can be turned into bottles again and again. By making its bottles with rPET, the brand also uses about 25 % less energy than if it used virgin plastic.
PepsiCo is one of the largest users of food-grade recycled PET in the world, and the company is also working to help reliably increase the supply needed to meet its packaging goals. In tandem with current suppliers and partners like The Recycling Partnership, Loop Industries, Alliance to End Plastic Waste, and World Economic Forum’s Global Plastic Action Partnership (GPAP), PepsiCo is aiming to both increase recycling rates and improve the plastic recycling infrastructure.
Learn more about our sustainable packaging vision here.
Following the recent news that The Coca-Cola Company plans to relaunch its sports drink Powerade in India within the next two months as part of its strategy to compete with PepsiCo’s Gatorade, Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view:
“The news comes as no surprise as the demand for functional sports drinks is growing exponentially in India and resonates well with millennials. Coca-Cola, being one of the country’s leading beverage companies, is now looking to tap into this category and increase its non-aerated drinks portfolio.
“Coca-Cola has collaborated with ICC World Cup as official sponsor with an aim to compete with Gatorade-owner PepsiCo in India. The calculative strategy is a part of company’s larger focus to evolve into a total beverage company by investing around $5bn by 2020 and make India as its third largest market. This is the second time Coca-Cola is trying to launch Powerade in the country.
“Powerade, which registered billion dollar plus sales globally, is currently available in India through imports. GlobalData forecasts the Indian sports drink market to grow from US$2.81bn in 2017 to US$5.87bn by 2023, propped up by healthy and better-for-you functional beverage options.
“Coca-Cola has collaborated with ICC World Cup as an official sponsor with an aim to compete with Gatorade-owner PepsiCo in India. The calculative strategy is a part of the company’s larger focus to evolve into a total beverage company by investing around $5bn by 2020 and making India its third largest market. This is the second time Coca-Cola is trying to launch Powerade in the country.
Following Tuesday’s (21 August 2018) launch by Coca-Cola of a £5m campaign to promote a new unified packaging redesign for its original and Zero Sugar variants, Jonathan Davison, Beverage Analyst at GlobalData, a leading data and analytics company, offers his view on this latest development:
“Coca-Cola’s Zero Sugar variant has achieved substantial gains across the UK in recent years, most notably a 29 % increase in 2017, so this move to unify its packaging design with the main brand will only strengthen the brand’s sales still further.
“A core brand packaging revamp like this will have been long in the planning, but the timing of Coca-Cola’s announcement provides the most compelling evidence yet that it is keeping a close watch on the progress of closest challenger PepsiCo.
“The unveiling of the new-look designs could well have been brought forward to counter the news of PepsiCo’s SodaStream acquisition, barely 24 hours after the latter featured heavily in mainstream global media. This, in turn, came days after Coca-Cola revealed plans to invest in sports drinks brand BodyArmor.
‘‘With virtually each passing day this decades-old rivalry between the two beverage giants intensifies further, and it is showing no signs of letting up any time soon.’’
Following the latest news that PepsiCo has purchased SodaStream for $3.2bn, Melanie Felgate, Senior Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view on the breaking news:
“As the carbonates industry faces ongoing challenges both in terms of health and the environment, the decision by PepsiCo to purchase Soda Stream is a bold and potentially smart move. Although long established, SodaStream has remained a relatively niche brand, but with the backing of a global soft drinks giant there is an opportunity to propel the concept mainstream.
‘‘SodaStream allows consumers to customize their own beverages to create not only flavors – but potentially sugar levels – to suit their needs, helping PepsiCo better meet consumer’s needs for products which are not only healthier but do not compromise on taste.
‘‘Furthermore as the environmental burden of plastic waste comes to the fore, the concept can also tackle this by reducing reliance on plastic bottles. This is likely to attract the 35% of consumers globally surveyed by GlobalData in Q3 2018 who claim they would buy more of specific types of products if they were “packaged without any plastic at all”.
‘‘Aside from environmental and health advantages, the move will undoubtedly enable consumers to recreate the famous Pepsi brands they are already familiar with and enjoy. This may help entice the 59% of consumers globally that are influenced by how familiar or trust-worthy a product feels when choosing non-alcoholic beverages, according to GlobalData’s Q3 2018 survey, and may help move SodaStream from a niche appliance to a mainstream fixture in homes.”
National nonprofit organization The Recycling Partnership (U.S.) announced its newest funding partner, the global food and beverage leader, PepsiCo. The organizations have agreed to collaborate on an ambitious cross-sector approach to increasing recycling rates across America.
PepsiCo’s collaboration with The Recycling Partnership will address the continued shortfall in U.S. recycling rates. Currently, still less than half of recyclables in U.S. homes are getting captured; just 22 million tons out of an available 46 million tons every year[1]. The Recycling Partnership has already directly assisted more than 400 local communities, improving curbside recycling for 17 million households. This work has resulted in the recovery of 115 million pounds of material, and savings of 382 million gallons of water and 164,000 metric tons of greenhouse gases. Each new funder expands The Partnership’s reach to improve recycling through local and national work.
PepsiCo has already made significant efforts to cut packaging waste from its snack and beverage products. In 2015 alone, it removed approximately 100 million pounds of packaging and used 139 million pounds of recycled PET. Last year, PepsiCo announced new goals to strive to design 100 % of its packaging to be recoverable or recyclable by 2025 and to partner to increase packaging recovery and recycling rates.
