PURCHASE, N.Y. and BENTONVILLE, Ark., July 26, 2023 /PRNewswire/ -- PepsiCo and Walmart today announced a 7-year collaboration to pursue $120 million worth of investments focused on supporting U.S. and Canadian farmers in their pursuit to improve soil health and water quality. By establishing and scaling financial, agronomic and social programs, it aims to enable and accelerate the adoption of regenerative agriculture practices on more than 2 million acres of farmland and deliver approximately 4 million metric tons of greenhouse gas (GHG) emission reductions and removals by 2030 – roughly equivalent to the amount of electricity needed to power 778,300 homes for one year1.
Commenting on the voluntary adoption of regenerative agriculture practices, Jeff Huffman, Owner & Operator of Island Farms LLC in Maxwell, Neb., said, "From my perspective, embracing regenerative agriculture is essential. It's good for farmers, not only because it's beneficial to the environment and our food quality, but also for the profitability of our businesses. If you use less fertilizer and you grow a bigger crop, or if you use less water and can still grow the same size of crop, it strengthens your farm in a way that benefits the bottom line and our environment for generations to come."
PepsiCo's and Walmart's businesses are dependent on farmers to grow ingredients that are used to make the delicious products that consumers enjoy every day. With a supply chain for the two companies that stretches across North America and involves a large volume of critical crops – including potatoes, oats, corn, wheat, soybean and rice – sustainability will look different from commodity to commodity, region to region, and even farm to farm. The collaboration between PepsiCo and Walmart offers a voluntary, flexible approach to regenerative agriculture that gives farmers a seat at the table, recognizes the diversity of agriculture and that one size does not fit all.
"Successful sustainability starts and ends with trust. At PepsiCo, we work very hard to earn the trust of the farmer so they understand that we are investing in their legacy and they can hand their farm down to the next generation," said Jim Andrew, Chief Sustainability Officer, PepsiCo. "Farmers know their business better than anyone else, and what we hear from them is that for regenerative agriculture to make business sense, three things need to happen. They need economic support, social and cultural support, and agronomic support. This strategic collaboration with Walmart will advance our shared goal to have farmers' backs as they transform farming in a way that benefits the planet and people."
"At Walmart, our sustainability strategy is built to make the everyday choice the sustainable choice for our customers. This collaboration with PepsiCo is a great example of how we are prioritizing the expansion of regenerative agricultural practices among farmers across North America so that we can continue to make quality products affordable and accessible for customers. This collaboration aims to help elevate farmer livelihoods, engage them on how to more sustainably manage soil health, increase yields and create a model that others can mimic across other product categories, including encouraging additional investments in regenerative agriculture by other brands," said Jane Ewing, Senior Vice President for sustainability at Walmart.
PepsiCo and Walmart have a shared focus on supporting farming communities while improving soil and water health, as well as lowering carbon emissions. As the largest convenient food and beverage company in North America, a resilient food system is essential to PepsiCo's business and its ability to meet its ambitious pep+ (PepsiCo Positive) goals, which include driving the adoption of regenerative agriculture practices across 7 million acres by 2030 – an area approximately the size of PepsiCo's agricultural footprint – and reducing absolute GHG emissions by more than 40% across its entire value chain by 2030 (against a 2015 baseline) while striving toward net-zero emissions by 2040.
"This effort is a new model for PepsiCo, marking our first, large-scale strategic collaboration focused on sustainable agriculture with a retail partner," said Steven Williams, Chief Executive Officer, PepsiCo Foods North America. "Farmers are critical to our business, and many of the brands our consumers know and love rely on ingredients that we source straight from the farm. By joining forces with Walmart, we'll be empowering farmers through education, upfront investment in outcomes, peer coaching, and cost-sharing – and hopefully inspiring others to join us."
This collaboration is a key example of how Walmart is prioritizing purposeful collaborations to accelerate the adoption of regenerative practices in line with its goal to protect, restore or more sustainably manage 50 million acres of land and 1 million square miles of ocean by 2030 along with the Walmart Foundation.
For more information about pep+, please click here.
For more information about Walmart's sustainability efforts, please click here.
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About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $86 billion in net revenue in 2022, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on Twitter, Instagram, Facebook, and LinkedIn @PepsiCo.
PepsiCo Cautionary Statement
Statements in this release that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. Terminology such as "aim," "anticipate," "believe," "drive," "estimate," "expect," "expressed confidence," "forecast," "future," "goal," "guidance," "intend," "may," "objective," "outlook," "plan," "position," "potential," "project," "seek," "should," "strategy," "target," "will" or similar statements or variations of such words and other similar expressions are intended to identify forward looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause PepsiCo's actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include but are not limited to: the risks associated with the deadly conflict in Ukraine; damage to PepsiCo's reputation or brand image; water scarcity; disruption of PepsiCo's manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs; climate change or measures to address climate change; changes in laws and regulations related to the use or disposal of plastics or other packaging materials; failure to comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations. For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
About Walmart
Walmart Inc. (NYSE: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 240 million customers and members visit more than 10,500 stores and numerous eCommerce websites in 20 countries. With fiscal year 2023 revenue of $611 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on Twitter at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.
1 https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator#results
SOURCE PepsiCo, Inc.; Walmart Inc.
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