SOURCE / PRESS RELEASE
PepsiCo pioneers heavy-duty electric truck in China, leading green supply chain
Published: May 25, 2023 05:52 PM
Photo: Courtesy of PepsiCo

Photo: Courtesy of PepsiCo

PepsiCo announced its launch and official deployment of electric heavy-duty trucks in China on Thursday, making it the first company in China's convenient foods industry to use heavy-duty electric trucks for end-to-end green delivery and showing another important milestone in PepsiCo's commitment to reducing its carbon footprint and developing a green supply chain. 

PepsiCo's Quaker brand also started its recycling carton project. The two initiatives mark a new phase in the development of the "pep+ (PepsiCo Positive)" initiative, the company's sustainability program, in China. 

Fred Li, supply chain vice president of PepsiCo's Greater China Region said, "We always adhere to the use of innovative technology to drive carbon emission reduction and promote the development of green energy. We strive to create a harmonious environment for the earth and people."

Photo: Courtesy of PepsiCo

Photo: Courtesy of PepsiCo

Leading green logistics for convenient foods industry 

PepsiCo has become the leader of carbon emission reduction in the convenient foods industry in China, covering the whole link from green supply chain optimization and green transportation to green logistics. 

In Southern China, PepsiCo has deployed heavy-duty electric trucks to distribute Lay's and Quaker products to central warehouses, and electric light trucks to customer warehouses, creating an end-to-end green distribution link. Meanwhile, PepsiCo has built its own clean energy charging pile in Foshan, which uses 100 percent clean energy for charging.

So far, PepsiCo has been using electric vehicles to transport Lay's, Quaker, Be & Cheery and other products in 15 distribution centers across China. It is expected that by the end of 2023, its electric vehicles will travel 750,000 kilometers. 

Photo: Courtesy of PepsiCo

Photo: Courtesy of PepsiCo

Quaker returnable carton helps reduce costs and carbon footprint

PepsiCo's Quaker brand is also actively promoting the development of a green supply chain by creating green boxes for recycling instead of traditional cartons. The electric trucks are deployed to transport the Quaker returnable cartons from the factory to the e-commerce warehouse, pick up the products and distribute them to consumers, then return the cartons to the factory for cleaning and recycling. 

Quaker's returnable cartons have been tested at five inventory points and are expected to reduce the annual use of 50,000 cartons, cut down carbon emissions by 31,000 kg, and lower the operating costs by nearly 10 percent.

Photo: Courtesy of PepsiCo

Photo: Courtesy of PepsiCo

The digitally intelligent Quaker returnable cartons are also equipped with Radio Frequency identification (RFID) technology, which not only improves visual inventory management, but also enables the boxes and goods to be traceable.

PepsiCo launched the "pep+" initiative in 2021, which is based on Positive Agriculture, Positive Value Chain and Positive Choices, the three pillars of pep+. It aims to achieve value creation and growth by operating in line with the Earth's ecosystem and bringing positive change to the planet. 

By sourcing raw materials, manufacturing and end-selling products in a more sustainable way, PepsiCo is committed to building a recyclable value chain, including the gradual implementation of net zero emissions and positive water conservation during production.

One of the goals of PepsiCo's "Positive Value Chain " is to realize net "zero emissions" by 2040. In the manufacturing process, the principle of "recycling" runs through all aspects of energy conservation and emission reduction in Pepsi factories. 

PepsiCo's achievements in green and low-carbon development have also been recognized by all sectors of society in China. For example, PepsiCo Green plant initiative was selected as the Best Practice Case of 2022 China Chain-store and Franchise Association, and PepsiCo won the Best Practice Case of 2022 Retail Supply Chain. In 2021, it was rated as a water-saving enterprise in Shanghai.