PepsiCo invests $15 million in closed-loop partners

PepsiCo North America Beverages announced that it will invest $15 million in the 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 companies in the packaging value chain
.

Beginning in 2014, PepsiCo worked with closed loop partners for several years as a founding member of the Closed Loop Infrastructure Fund
.
Additionally, they are investors in the Closed Loop Partners Beverage Fund, 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-branded products will use 100% R-PET bottles, and by 2022, PepsiCo Zero Sugar will start selling in 100% R-PET bottles
.

Demand for PCR ingredients has increased significantly in recent years as fast-moving consumer goods (FMCG) companies pledge to use post-consumer recycled (PCR) ingredients in their packaging over the next 5 to 10 years
.

Low recycling rates in the U.
S.
may not keep up with demand
.

“The recycling landscape in the U.
S.
remains challenging, and as companies set ambitious goals to use more recycled materials in their packaging, now more than ever, partnership and action to increase the use of recycled materials is needed
.
” PepsiCo Beverages said Jason Blake, Chief Sustainability Officer and Senior Vice President, 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, will push R-PET prices to all-time highs in 2021
.