Montreal-based Loop Industries Inc. and Purchase, New York-based PepsiCo Inc. have entered into a multiyear supply agreement that will enable PepsiCo to purchase production capacity from Loop’s joint venture facility in the United States and incorporate Loop PET (polyethylene terephthalate) plastic into its product packaging by early 2020. Loop PET is made completely from recycled material.
According to Loop Industries, its technology allows no- and low-value plastics to be diverted, recovered and recycled into new, virgin-quality Loop PET plastic. The company’s technology can recycle plastic bottles and packaging of any color, transparency or condition; carpet, clothing and other polyester textiles that may contain colors, dyes or additives; and even ocean plastics that have been degraded by sun and salt into recycled PET that meets U.S. Food and Drug Administration requirements for use in food-grade packaging, Loop says.
As one of the largest purchasers of recycled PET in the consumer goods space, PepsiCo has identified Loop PET as a commercially viable technology to expand the amount of recycled content in its product packaging and to help meet its sustainability ambitions and consumer needs, the partners say in a say in a news release about their agreement.
“Loop’s technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste,” says Mehmood Khan, vice chairman and chief scientific officer, PepsiCo. “This partnership represents a step-change that will empower PepsiCo in our drive towards creating a circular economy for plastics.”
“We are very proud to supply PepsiCo with Loop branded PET plastic,” says Daniel Solomita, founder and CEO of Loop Industries. “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.”
The deal also will include a marketing and communications plan to raise awareness of the importance of recycling, sustainability and the circular economy, the partners say.