PepsiCo Partners with Bioplastics Company for Packaging Renewal
Building on a longstanding relationship, PepsiCo has joined forces with Danimer Scientific to develop biodegradable film resins that meet the sustainable flexible-packaging requirements of the food-and-beverage giant.
The partnership is serious enough that PepsiCo has acquired a 6% stake in Danimer, according to the investor presentation. Also, one of Danimer’s eight directors will be PepsiCo Foods North America Senior Vice President and Controller Christy Basco, according to regulatory filings.
In the past, Danimer Scientific developed biobased compostable packaging for PepsiCo’s snack brands. The new initiative is right in line with PepsiCo’s announced strategy to make all of its packaging recoverable or recyclable.
“From the start, PepsiCo has taken a holistic approach to our sustainability work,” said PepsiCo Vice Chairman and Chief Scientific Officer Dr. Mehmood Khan. “Our first objective is achieving long-term profitability, and that requires sustainable solutions to grow our business while minimizing our environmental impact. Our plan to scale Danimer Scientific’s technology is a step toward achieving both our greenhouse-gas emission reduction and our recoverable and recyclable packaging goals.”
Danimer Scientific’s CEO, Stephen Croskrey, “Danimer Scientific’s partnership with PepsiCo marks a significant milestone as we continue to expand our biopolymer technology to provide innovative bioplastic solutions to a wider range of applications and products. We’ve been developing a relationship with PepsiCo for the last seven years, and as one of the largest food-and-beverage companies in the world, their commitment to limiting the environmental impacts of their products can actuate real change in the way of sustainability.”
According to The New York Post, Croskrey admitted there was no agreement that PepsiCo would be giving them 100% of the snack bag business. At the same time he added: “We’ve been working with them for 11 years on this project,” and they don’t appear to be working with any other bioplastics company.”