PepsiCo to invest in packaging-free beverages

PepsiCo is looking "beyond the bottle" to beverages that require zero packaging, according to CEO Ramon Laguarta.

Using PepsiCo's recent SodaStream purchase as an example, Laguarta said the company is investing in "new spaces of consumption" that do not require a bottle. He said opportunities abound for occasions where the consumer can still "personalise" their consumption but which "eliminate the need for bottle, plastic and everything else".

PepsiCo closed its SodaStream purchase in December, saying the deal brought with it opportunities for customisation and a chance to cut plastic waste. In marketing campaigns prior to the PepsiCo purchase, the Tel Aviv-based SodaStream criticised the soft drinks industry for its reliance on plastic packaging.

Laguarta made the comments during a presentation at CAGNY, an investors conference held annually in Florida. The event marked Laguarta's first appearance at the event as PepsiCo CEO following his promotion to the role four months ago.

In his speech, he said the SodaStream acquisition is a "clear example" of how PepsiCo can align its commercial strategy with sustainability efforts. Suggesting that similar purchases to the SodaStream buy lay ahead, Laguarta said: "We grow and also we help the planet. So, we want to do more of those."

Meanwhile, group CFO Hugh Johnston admitted that the launch in 2017 of the Lemon Lemon brand was not as successful as the company had expected. Talking about shifting investment towards core brands in the first half of 2018, Johnston said money was taken away from beverages that "didn't do as well, the Lemon Lemons of the world and things like that".

PepsiCo rolled out the 7-Up-style Lemon Lemon at the same time as Izze juice extension Fusions, calling the lower-calorie beverages "next generation" carbonated soft drinks.

How important is the plastic crisis? More important than Brexit - Click here for just-drinks' sustainability spotlight

---