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The Pepsi Generation
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By Inspired Protagonist - July 10, 2009

Ceres LogoIn between recent preparations for our just-completed sustainability summit, I found out that PepsiCo has joined Ceres -- not the juice brand but the coalition of non-profit groups, investors, and corporations that are working together on sustainability issues. This is pretty big news if for no other reason that the fact that the company itself is huge. Imagine if Seventh Generation had annual revenues of more than $21 billion a year, employed 100,000 people, and sold its products in 100 countries. That's a size that's almost impossible to imagine. Now double those numbers. That's PepsiCo.

By joining Ceres, Pepsi is making a statement that it's putting sustainability if not on the front burner at least on the stove. Coming from a company so gigantic, one that wields equally enormous influence and that relies so heavily on disposable packaging, not to mention tremendous amounts of water and energy, this is a positive development.

As many of you know, Chuck Maniscalco, our new CEO, worked for Pepsi until quite recently. We talked about his experiences there during our many conversations about him joining our own company. He told me about Pepsi's new "Performance with Purpose" which aims to increase everyone's focus on sustainability issues; cut fuel, electricity and water consumption by 20-25%; analyze product carbon footprints; and even develop a compostable bio-plastic snack food bag.

These and other things represent a dedication to the cause that may not be quite up to the commitment shown by a giant like WalMart, but is certainly moving in the right direction. There's also a larger meaning: Pepsi's membership in Ceres shows solid progress on sustainability in the corporate world. When a company the size of Pepsi decides to take sustainability seriously, it sends a big message. Now we just have to wait, watch, and hope PepsiCo's executives follow through on their Ceres membership by making changes that earn it.

Comments
So, this brings up the
Posted by Jensen | Sun, Jul. 12, 2009

So, this brings up the eternal debate: how much change can a company that makes its money on something fundamentally unsustainable bring to the table? Pepsi makes its money by selling soda. Soda consumes huge amounts of water and energy to addict people to corn syrup and make them fat.

So, the question is: does making a fundamentally unsustainable practice more sustainable represent something that should be lauded by the environmental community? I.e. the core mission of the company vs the processes and practices (which admittedly can be outsourced for the good of other companies)

Support their progress while we continue to challenge them
Posted by Inspired Protagonist | Tue, Jul. 14, 2009

There's no question that it's hard to get excited about companies that make positive changes but continue to sell products that are fundamentally either unhealthy or environmentally destructive. Yet at the same time if we don't support their progress while we continue to challenge them to do better they may be less inclined to move in the right direction (see my previous posts on Pepsi). That balance is critical.

Wal-Mart is a good case in point; I cheer when they do the right thing, but that never stops me from taking them to task whereever they fall short. At the end of the day we do need revolutionary, not incremental change. The challenge is that most large companies will only make incremental changes.

We need to push them hard so that time doesn't run out!

relies so heavily on disposable packaging
Posted by dingobat | Fri, Jul. 17, 2009

as long as you mentioned it, how is Seventh Generation coming along with it's packaging? Considering that plastic is still not recycled in many areas of the country, but showing up more and more on the beaches of the world, how could Seventh Generation packaging be upgraded, eliminating the reality of plastic bottles and wrappers being "disposed of" and not recycled, so often?

Inspired Protagonist reply to disposable packaging
Posted by Inspired Protagonist | Mon, Jul. 20, 2009

Thanks for your question. In packaged consumer products the challenge of minimizing packaging impact is significant. At Seventh Generation we are making progress on 3 fronts:

1. We are actively looking for ways to use less packaging, whether it be by optimizing product design to use less paper or plastic (light-weighting) or finding ways to eliminate packaging that is not critical to the consumer experience.

2. We have been increasing the use of post-consumer recycled (PCR) content in our bottles over the past year. We now have a number of bottles at 70% PCR. We are about to launch our new hand dish liquid bottle at 90% PCR content this summer, which is the highest in the category (and will be the first of many at this level). By increasing PCR content we are reducing the amount of new virgin plastic that needs to be manufactured from non-renewable resources as well as creating demand for recycled material. We estimate we will reduce our virgin plastic usage by 1 million lbs in 2009 alone with this approach.

3. We are constantly looking for new materials for our packaging, with the major focus being plastic-like materials made from renewable, plant-based resources that can be composted or recycled. Many of these materials are not yet ready for prime time, however we are working with the manufacturers to ensure we will be among the first in line when they are.

As you can see, packaging is a major focus area for us and we are constantly pushing and challenging ourselves to use less, to use post-consumer recycled wherever possible and to stay at the leading edge of new materials that represent sustainability improvements.

Challenge Pepsi to use sugar
Posted by Jeani | Wed, Jul. 22, 2009

I avoid soft drinks made with corn syrup and so had not had a Pepsi in years. Then they came up with "Pepsi Throwback" made with sugar, but it was only "available for a limited time." I managed to track it down at one store in my mid-sized town and gave it a try. It was vastly superior to the usual corn syrup Pepsi. But now it's gone. Oh well, I shouldn't be drinking soft drinks anyway! But is there a way the Inspired Protagonist can encourage the soft drink companies and other manufacturers to get rid of the high fructose corn syrup and start using organic sugar?

show us
Posted by cynthia1957 | Wed, Jul. 22, 2009

When Pepsi starts using sugar again and produces/packages locally I will believe they are serious about sustainability. Soda used to be made and packaged locally using local water and recycled glass bottles. Not much fuel used to transport and local people had jobs. I would even be willing to pay a bit more in the name of less waste.