PepsiCo invests $15 million in Closed Loop Partners

        PepsiCo North America Beverages announced that it will invest $15 million in Closed Loop Partners’ Leadership Fund to strengthen recycling infrastructure and build circular supply chains. Closed Loop Partners is a New York-based investment firm focused on building a circular economy. The Leadership Fund is a private equity fund that acquires and grows companies, including those along the packaging value chain.

        PepsiCo has been working with Closed Loop Partners for several years as a founding member of the Closed Loop Infrastructure Fund, starting in 2014. In addition, they are an investor in the Closed Loop Partners Beverage Fund, which is sponsored by the American Beverage Every Bottle Back Initiative. Through investments in recycling infrastructure, PepsiCo hopes to achieve several sustainable packaging goals. By 2030, all PepsiCo brand products will be sold in 100% R-PET bottles, and PepsiCo Zero Sugar beverages will begin to be sold in 100% R-PET bottles by 2022.

        Demand for post-consumer recycled (PCR) ingredients has increased significantly in recent years as fast-moving consumer goods (FMCG) companies have pledged to use PCR ingredients in their packaging over the next 5 to 10 years. Low recycling rates in the United States may not be able to keep up with demand.

        "The recycling situation in the United States remains challenging, and as companies set ambitious goals to use more recycled content in their packaging, now is more than ever the time to build partnerships and take action to increase the use of recycled content," said Jason Blake, Chief Sustainability Officer and Senior Vice President, PepsiCo Beverages North America.

        According to NAPCOR’s 2020 PET Recycling Report, the U.S. PET bottle recycling rate fell from 27.9% in 2019 to 26.6% in 2020. Low collection rates, coupled with strong demand, pushed R-PET prices to an all-time high in 2021.