UK – Snacks and beverage company PepsiCo has announced plans to invest US$19 million in its Pipers Crisps manufacturing facility in the UK amid growing demand.
Piper’s Crisps sales have more than doubled since it was acquired by PepsiCo in 2019.
Aspart of the upgrade, PepsiCo will replace fryers in the Lincolnshire facility and install new packaging equipment.
The company expressed optimism that the investment will help meet growing demand in the export market.
“The funding will boost production at the potato snack factory by nearly 80% to satisfy demand both in the UK and the brand’s growing export market,” the company said in a statement.
“Pipers Crisps has ‘cemented its leadership in the UK’s premium, ‘away from home’ crisps market, with growing demand across hospitality locations.“
The investment is part of the company’s wider end-to-end strategic transformation, which is based on product quality, diversity, and distribution channels.
To meet growing demand, the company expanded its distribution network in 2021 to include national wholesalers like Brakes and Bidfood, Booker, and hospitality operators like Stonegate and Youngs in the UK.
This development comes almost a year after the company unveiled plans to invest up to US$72.2 million pounds in its Walkers brand Leicester facility, marking its largest investment in the UK in a quarter-century.
This substantial investment aims to bolster the facility’s capabilities through the installation of a new manufacturing line, updating equipment to enhance sustainability, and improving employee facilities.
These planned upgrades align closely with the company’s pep+ sustainability initiative, which aims to achieve net-zero emissions by 2040.
The upcoming changes encompass four key areas designed to support sustainability objectives. Firstly, installing the new manufacturing line expands production capacity and contributes to reducing the plant’s carbon footprint by relocating production from Europe to Leicester.
PepsiCo estimates that once construction is completed in 2024, transportation-related emissions will decrease by 915 tonnes annually.
Furthermore, the company has outlined plans to transition from gas-powered ovens to electric ones powered entirely by renewable electricity.
This transition is expected to result in an annual reduction of approximately 1000 tonnes of greenhouse gas emissions.
Additionally, PepsiCo aims to diminish its use of virgin plastics in outer packaging by 56 tonnes annually by implementing new compact packaging equipment.
These measures underscore the company’s commitment to sustainable practices while enhancing operational efficiency and reducing environmental impact.
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