How PepsiCo Closes the Sustainability Loop with Reusable Packaging

Adopt a formal, phased rollout of reusable packaging across offices and formats to close the loop quickly. This move creates clear guidance, predictable collection routines, and a path to scale that keeps materials circulating within the system.

In practice, PepsiCo concentrates on three levers: introducing durable reusables, expanding compostable options where effective, and aligning formats a keresztezése felett multiple-site portfolio. In irodák, a centralized collection system and clear útmutatás reduce leakage and boost reuse rates; six months of data show a 40% return rate and a 25% drop in virgin packaging use.

The approach centers on a collection of reusable bottles and cups that arrive back for cleaning and reworked into new formats when needed, extending the life of each asset within the loop. A subset uses compostable components for certain waste streams, supporting formal waste separation in irodák and facilities, with víz inputs tracked to measure improvements.

To move from pilots to scale, the plan introduces a formal governance layer and a guidance playbook that standardizes collection workflows, labeling, and formats across regions. The portfolio includes reusable packaging in beverage formats, store formats, and on‑the‑go formats, ensuring well-integrated reuse flow across regions.

Recommendation checklist: implement a recurring cadence for útmutatás updates, establish a central collection ledger, measure amount saved in virgin material, and publish quarterly results to stakeholders. Expand compostable options where appropriate and introduce víz-use targets aligned with local facilities. Roll out across irodák in waves and rework designs to maintain durability at scale.

PepsiCo Circular Packaging & Policy Advocacy

Implement a policy toolkit that aligns regulators, retailers, and producers to expand refillable loops and paper-based packaging. Set a target to cut packaging footprint per unit by at least 20% within five years, while preserving food-grade safety and product protection. Tie incentives to easy recycling outcomes and waste reduction across value chains. This approach shows concrete steps that support those teams delivering results.

Launch a cross-sector coalition to support policy advocacy, working together with regulators, retailers, and producers. Engage 60+ producers, 25 policymakers, and 15 waste-management partners in a 12-month program to codify standards, labeling, and procurement levers. Create a shared policy brief that clarifies compostable, refillable, and recyclable pathways, including the role of paper-based packaging for specific product lines and other formats. The coalition will publish clear metrics and case studies to illustrate outcomes.

Implement practical steps across the value chain: expand refillable beverage formats in key markets; migrate compatible lines to food-grade packaging; pilot compostable packaging where rules permit; prioritize paper-based materials for non-food contact or limited-risk goods; design packaging for recycling with clear labeling; map waste streams and build end-to-end capture. This approach keeps those engaged across supply chains contributing to a circular model.

Governance and data: set KPIs such as share of packaging that is refillable or recyclable, rate of material recovery, waste diversion, and cost delta per SKU. Use a simple dashboard to track progress and publish quarterly updates. Align with regulators and retailers to ensure packaging complies with safety rules (food-grade) and labeling. Among the outcomes, expect lower footprint and higher consumer trust. The policy advocacy should be supportive of innovators and partners across markets; the world needs practical, scalable solutions that reduce waste and support sustainable growth.

Scale reusable packaging across SKUs and regions to enable cross-market interoperability

Launch a unified cross-market platform now: build a common core of reusable packaging formats for the top SKUs and standardize dimensions, closures, and pallet footprints to enable cross-market interoperability. Assign a central governance team and empower regional leads to adapt packaging within set parameters, ensuring compatibility among factories, warehouses, and retailers across markets.

Secure investment to build a reworked design library, digital tooling, and a phased rollout. Prioritize factors that drive reuse: durability, efficient return logistics, and clear labeling. Potentially we will reduce total weight per SKU and improve biodegradability options where reuse is constrained. Launched pilots in brazil, the US, and Europe showed higher return and recycle rates; those early results told a compelling story that we can replicate together across markets.

Table below presents the phased rollout to guide execution and governance. It captures region, core SKUs, packaging types, interoperability status, required investment, timeline, and KPIs.

Next steps: formalize governance, align supplier contracts, and synchronize labeling and recycle information across markets so that those packaging assets can be reused sooner and more broadly, strengthening the corporate story and corporate business value.

Design and test return, cleaning, and refill workflows in flagship markets

Start a 12-week pilot in brazil flagship markets to validate end-to-end return, cleaning, and refill workflows, with a clear goal to increase reuse by 25% and reduce waste by 20% across the loop.

Map the workflow: collection points at stores and vending machines, safe transport to food-grade cleaning lines, verified refill cycles, and optimized supply replenishment. Use flexible packaging and a választék of sizes to fit local demand. Ensure hygiene and operate a standard scenario for each market to compare performance.

Equip teams with technológia: sensors to monitor fill levels, RFID tags for tracking, and batch-level information for each stage. Build dashboards for tisztviselő-level visibility, with kpis a oldalon collection rate, cleaning cycle time, and refill success. Oktatás sessions for store staff to improve adoption. Use a single source of information to reduce miscommunication.

Address difficult scenarios such as remote stores, peak season, or weather disruptions with a scenario-driven workflow that can operate across a választék of store formats. Use brazil as the primary testbed, align with fejlesztések in packaging and cleaning to keep outcomes positive. Assign a pepsico officer to oversee implementation.

Education materials should cover cleaning hygiene standards, refill procedures, and customer-facing messaging. Training should be repeated and updated with feedback, accelerating hamarabb adoption. Track information flows and ensure data quality to inform decision making. The goal is to show better results in the flagship markets before scaling to other regions.

Expected outcomes include a 15-20% rise in return rate, 10-15% increase in collection coverage, and improved supply reliability. Consider összeg saved via waste reduction and packaging savings. Use the officer’s dashboard to monitor kpis and adjust operations quickly. The technológia stack should support cross-border scaling with standard operating procedures and flexible packaging specs.

Next steps include publishing findings, refining SOPs, and running a second wave in other flagship markets with the same design. The information gained will feed into the development backlog and guide future decisions for pepsico initiatives aimed at closing the sustainability loop.

Policy engagement playbook: navigate EPR, DRS, and recycling targets

Adopt a 90-day policy engagement sprint to align EPR, DRS, and recycling targets across key markets. This plan motivates governments, brands, and recyclers to commit to a shared timetable, moving bottles into formal recovery channels sooner and establishing accountability for disposal outcomes. Coordinate across times to keep momentum.

Create a policy map that ties EPR fees, DRS deposits, and recycling targets to actual disposal results, with derived metrics and transparent data sharing. Map should show how each lever affects bottle collection, sorting, and processing across similar contexts.

Establish three parallel work streams: regulatory alignment with governments, market readiness for collection systems, and consumer engagement to boost return rates. In areas where data is lacking, run targeted pilots and collect learnings. A governance body is created to coordinate these streams; assign a project lead from the brand and a government liaison to keep momentum. Coordinate across times to align budgets and actions. Stakeholders told us that data access remains a barrier; macarthur principles guide the data-sharing plan.

Apply a macarthur-inspired systemic model: break silos, create shared data platforms, and fund pilots that test changes in EPR design, DRS pricing, and end-of-life disposal.

Barbieri’s analysis notes lacking consistent targets and data, while brazil offers a variety of local experiments that show how unified messaging and shared accountability lift recovery rates. For the project to scale, these insights must be embedded into policy design and brand commitments.

To capture progress, publish a milestones plan with a clear timeline and require quarterly reports shared with governments, NGOs, and brand partners. This increases trust and keeps solutions moving.

Close the loop by integrating packaging design to recycle sustainably: reuse loops for bottles and other packaging, aligning with times for policy changes across markets.

Collaborate with retailers, suppliers, and consumers through a governance framework

Create a formal governance framework with clear ownership across the company, retailers, and suppliers to drive a closed-loop for beverages packaging.

This governance closes the loop by aligning incentives, data flow, and accountability, enabling a continuing cycle of improvements that benefits all partners and customers.

1. Formal governance and ownership: Establish a cross‑functional packaging council with designated ownership for design, sourcing, logistics, and consumer engagement. Bind retailers and suppliers to a formal charter with clear milestones, timelines, and consequences for underperformance. This structure drives greater accountability and consistent decision‑making across a variety of packages and formats.
2. Metrics and data sharing: Implement a single platform that tracks tons of packaging diverted, weight of recycled content, and the percentage of packages that are recyclable. Set targets such as increasing recyclable packaging to a defined percentage and decreasing virgin weight by around 15–20% by 2030. Use this data to inform ongoing improvements and to report progress transparently to all stakeholders.
3. Retailer collaboration and sortation: Partner with retailers on formal sortation pilots at key distribution centers and stores. Share standardized criteria for packaging compatibility with store operations, enabling retailers to implement faster, lower‑cost handling and improving recovery rates at scale. Allowing joint adjustments in shelf-ready packaging supports consumer switching to reusable or reusable‑friendly options within the same store network.
4. Supplier alignment and packaging specs: Align supplier contracts to prioritize recyclable materials, recycled content, and packaging that supports reuse. Require packaging specifications that reduce total weight while preserving package integrity, improving overall efficiency. Leverage innovations from suppliers to create a variety of packaging solutions that maintain performance for beverages without increasing waste.
5. Consumer engagement and switching incentives: Design programs that encourage consumers to switch to reusable or refillable options. Use clear labeling, prominent take‑back instructions, and loyalty incentives that reward participation in the loop. Track consumer response and adjust programs to maximize participation and be scalable across markets, driving significant gains in reuse rates.
6. Transparency, benchmarking, and learning: Publish periodic dashboards that compare progress against macarthur circular-economy benchmarks and similar peers. Highlight what works, share failures openly, and scale innovations that demonstrate impact. Foster ongoing learning to accelerate improvement across regions and product categories.
7. Beaches of scope and continuous improvement: Within the governance framework, maintain a steady cadence of reviews to identify where arrangements can be tightened, where weight or variety of packages can be optimized, and where the program can decrease complexity without sacrificing performance. The goal remains: closer collaboration among retailers, suppliers, and consumers yields faster, more sustainable outcomes for beverages and beyond.

Economics of reuse: track costs, savings, and ROI for stores and brands

Launch a 12-month pilot to quantify total costs and savings from reusable packaging, and measure ROI to decide scaling.

Create a simple dashboard shared across stores to capture acquisition cost, operating expenses (washing, repair, returns), storage, and depreciation, then compare to a single-use baseline.

Example ROI model: with an initial capex of $320,000 and annual operating costs of $120,000, annual savings from material reductions and logistics amount to $240,000, while waste disposal offsets reach $60,000; net annual savings total $120,000, yielding a payback of about 2.7 years.

For consumers, the value shows in greenhouse gas reductions and steadier pricing; on a global scale, brands can launch better recycling loops; use rpet packaging to extend life.

Guidance for executives and teams: define cost categories clearly, set annual targets, and assign progress owners; track same packaging across channels to avoid double counting; maintain variety of packaging options to meet product needs.

Regulatory context: among state laws and global guidelines, ensure compliance with labeling, return policies, and reporting of greenhouse gas reductions; consider rpet content as part of product spec.

Operational note: operate a variety of container sizes and caps to fit different channels; balance cost with savings; issue tracking helps reduce losses.

Close: share the results with the executive team and store operators to speed up deployment; early wins from reuse drive value for consumers and brands.