PepsiCo, Inc. PEP announced a global sustainability agenda to meet the changing consumer and societal requirements and also promote business growth.
In order to bring about sustainable growth by 2025, PepsiCo plans to take up the following initiatives.
The company plans to cut calories in its products by reducing the amount of sugar, sodium and saturated fat. This initiative will please health conscious consumers a great deal. Also, government has imposed taxes on soft drinks and fruit juices in order to put a check on obesity and diabetes.
The company will work toward increasing the rate of sales growth of Everyday nutrition products (whole grains, fruits and vegetables, dairy, protein and hydration) over the sales growth of other PepsiCo offerings.
The company also intends to ensure water-use efficiency of its direct agricultural supply chain and direct manufacturing operations. It has already achieved 25% improvement in this field since 2006. It will now focus on replenishing 100% of the water it uses in high-water-risk areas.
PepsiCo aims to reduce absolute greenhouse gas emission across the company's value chain by at least 20% by 2030. It will also sustainably source both direct and major non-direct agricultural raw materials by 2020 and 2025, respectively.
The company also aspires to achieve zero waste to landfill across its direct operations, reduce the food waste it generates in its direct operations by 50% and make 100% of its packaging recoverable or recyclable by 2025.
PepsiCo plans to build a diverse workforce. It also looks to promote female diversity in its employee base.
It intends to expand its Sustainable Farming Initiative to approximately 7 million acres, extend the principles of the company's Supplier Code of Conduct to all franchisees and joint venture partners and invest $100 million to support initiatives to benefit 12.5 million women and girls around the world by 2025.
Management is hopeful that these initiatives will boost its long-term financial performance and help transform its food and beverage product portfolio, creating a more sustainable global food system and helping local communities prosper.
PepsiCo carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other favorably ranked stocks in the consumer staples sector include Primo Water Corporation PRMW, The Kraft Heinz Company KHC and Tate & Lyle plc TATYY.
All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kraft Heinz is likely to see a 48.05% rise in fiscal 2016 earnings while Primo Water is expected to witness a 140% increase in earnings. Fiscal 2017 earnings for Tate & Lyle are expected to record 6.25% growth.
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