PepsiCO, partners with companies, including Nestlé Waters, to develop bio-based bottles

The NaturALL Bottle Alliance is a research consortium formed in 2017 by Danone, Nestlé Waters and bio-based materials development company Origin Materials to accelerate the development of innovative packaging solutions made with 100 per cent sustainable and renewable resources.

PepsiCo has joined the alliance to advance the shared goal of creating beverage containers with a significantly reduced carbon footprint.

The Alliance also provides a progress report in its goal of developing and launching a PET1 plastic bottle made from bio-based material.

Launched in March 2017, the alliance uses biomass feedstocks, such as previously used cardboard and sawdust, so it does not divert resources or land from food production for human or animal consumption.

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The technology being explored by the alliance represents a scientific breakthrough for the sector, and the Alliance aims to make it available to the entire food and beverage industry.

PepsiCo vice chairman and chief scientific officer Mehmood Khan said creating more sustainable packaging requires innovation through the value chain.

“Producing PET from sustainable bio-based sources that do not diminish food resources and are fully recyclable is a great example of such innovation and an important contributor to PepsiCo’s sustainable packaging program,” said Khan.

“Through our Performance with Purpose agenda, PepsiCo is committed to reducing the carbon impact of packaging in line with our goal to reduce absolute emissions of greenhouse gases by 20 per cent by 2030.

“Bio-based PET has the potential to reduce significantly the carbon footprint of our PET bottles, a huge contribution to our efforts in this area,” said Khan.

Origin Materials CEO John Bissell said PepsiCo is a welcome addition to the alliance because the the companies all share the goal of making renewable plastic a reality.

“Through the combined efforts of its members, the NaturALL Bottle Alliance is setting the bar for sustainability for an entire industry,” said Bissell.

1PET – Polyethylene terephthalate is the most common plastic in polyester family and is used in fibers for clothing, containers for liquids and foods, thermoforming for manufacturing, and in combination with glass fiber for engineering resins.

PET is also known as having one the most developed collection and recycling systems in the world, making it a key asset for the circular economy of plastics.

Nestlé Waters’ head of research and development, Massimo Casella, said the alliance has taken an important step in working together to tackle the challenges around plastic packaging.

“Developing 100 per cent bio-based PET is one way Nestlé is working to use more materials from sustainably managed renewable resources,” said Casella.

Shift in rankings of companies listed in Rabobank Global Dairy Top 20

For the second consecutive year, there are no new entrants to the Rabobank’s Dairy Top 20 list, but there’s been a slight shuffle in rankings.

The world’s largest food and beverage company, Switzerland’s Nestlé, reigns supreme on the list, but the gap between number one and number two has narrowed.

French Lactalis swapped places with Danone, moving into second place.

Danone slipped to the third spot, after divesting Stonyfield following the acquisition of WhiteWave, reducing its stake in Yakult, and selling its holdings in the Al Safi Danone joint venture in Saudi Arabia.

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Dairy price recovery in 2017 has positively affected the combined turnover of the top 20 global dairy companies, which was up 7.2 per cent on the year in USD, RaboResearch has shown.

Dairy senior analyst Peter Paul Coppes said the USD five billion threshold was difficult to achieve due to a scarcity of large acquisitions or mergers.

“However, while the names have remained the same, the order shifted in 2017.”

Merger-and-acquisition (M&A) activity in the dairy sector grew in 2017, fuelled – as in other sectors – by the availability of cheap capital.

Cooperatives are still dominating, but they are also challenged. Deals between Danone and WhiteWave, and Saputo and Murray Goulburn, had limited impact on rankings within the Global Dairy Top 20.

While M&A occurs in the dairy sector, dairy acquisitions tend to be limited in size and financial impact.

There is potential for growth within increased collaborations between Chinese and non-Chinese companies. If this happens, China has the potential to create a pipeline of global management talent.

Chinese companies need to address the integration of non-Chinese management as they consider global growth opportunities.

Rabobank sees an increased amount of disruption-based M&A deals, either defensive or opportunistic.

By nature, these deals are often small and involve start-ups, but they are growing in volume.