Innovators Loop Industries has announced a multi-year supply agreement with PepsiCo to allow the drinks brand to incorporate Loop’s 100% recyclable PET plastic into its product packaging by 2020.
The agreement will also allow PepsiCo to purchase production capacity from Loop’s joint venture facility in the United States.
Loop Industries has developed technology that allows no and low value plastics to be diverted, recovered and recycled endlessly into new, virgin-quality Loop PET plastic.
This innovation also allows plastic bottles and packaging of any colour, transparency or condition, carpet, clothing, other polyester textiles and ocean plastics to meet FDA requirements for use in food-grade packaging.
PepsiCo has identified Loop PET as a “commercially viable technology” that will expand the quantity of recycled content in its product packaging and help meet its sustainability ambitions and consumer needs.
Loop Industries founder and chief executive Daniel Solomita said: “We are very proud to supply PepsiCo with Loop branded PET plastic. Working with a global food and beverage giant like PepsiCo will further establish the value proposition of the Loop brand and mission – to accelerate the world’s shift toward sustainable plastic and away from the traditional, take, make and dispose economy.”
PepsiCo vice chairman and chief scientific officer Mehmood Khan said: “Loop’s technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste. This partnership represents a step-change that will empower PepsiCo in our drive towards creating a circular economy for plastics.”
The deal will also include a marketing and communications plan to raise awareness of the importance of recycling, sustainability and the circular economy.