Frito-Lay

RATING

SECTOR

Food Products

WEBSITE

CONTACT

Frito-Lay North America, Inc 7701 Legacy Dr, Plano, TX 75024

STOCK EXCHANGE

LISTING

 

  • #39 World’s Most Valuable Brands 2020
  • #384 America’s Best Employers 2016

 

EMPLOYEES

55,000

CHIEF SUSTAINABILITY OFFICER

Joe Gold

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Report created by Cec Ehrhard   

Frito-Lay

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Frito-Lay is a consumer packaged goods producer based in Plano, Texas. Frito-Lay manufactures, markets, and sells corn chips, potato chips, and other snack foods. 

Frito-Lay was founded in 1945, from the original merger of the Frito Company and H.W. Lay & Company. The Frito Company first created the actual ‘Frito’ chip that is still sold in stores today, while H.W. Lay & Company originally produced just potato chips. With this merger, the company transformed into Frito-Lay, Inc.

In 1965, Frito-Lay merged with PepsiCo to become a subsidiary company and continued to expand into snack developments. For instance, in the late sixties Frito-Lay came out with Doritos and Funyuns which are still extremely popular today. Frito-Lay continued to acquire more companies such as Smartfood, and expanded into selling new products like Sun Chips and a different variety Rold Gold pretzels. Frito-Lay has international brands as well such Walker’s potato crisps. To date, Frito-Lay is one of the biggest snack producers, with its most popular brands being Lays chips, Cheetos, Tostitos, Ruffles, Smartfood, and Sun Chips. 

Company Sustainability Activity

Frito-Lay has laid out their sustainable activities on their website but does not have their own CSR report. Their parent company, PepsiCo, has a CSR report that includes information regarding all PepsiCo products and production.

Frito-Lay has engaged in basic sustainable activities and regulation. The main points and targets are set to reach by 2025. 

Highlights

  • 100% sustainable sourced corn and potatoes 
  • 100% production converted to natural gas from renewable resources
  • 100% LED lighting

Targets

Reducing Environmental Footprint

  • By 2030, reduce GHG emissions by at least 20%

Sourcing & Products

  • By 2020, 100% palm oil and sugar sustainability sources  
  • By 2025, 75% of foods portfolio volume will not exceed 1.3 milligrams of sodium per calorie
  • By 2025, 75% of food portfolio volume will not exceed 1.1 grams of saturated fat per 100 calories 

Minimizing Waste

  • By 2025, 100% sustainable sources raw materials 
  • By 2025, design 100% recyclable, compostable, or biodegradable packing
  • By 2025, reduce 35% of virgin plastic content across beverage portfolio 

Managing Water

  • By 2025, improve water efficiency in agriculture supply chain (corn and potatoes) by 15% in high water-risk areas
  • By 2025, improve operational water-use efficiency by 25%
  • By 2025, replenish 100% of manufacturing operations water in high water-risk areas by 100%
  • By 2025, deliver safe water access to 25 million people

Progress

  • USDA Organic Certified for some products 
  • Reduced water use intensity by 4.8% per year
  • Reduced packaging plastic by 7.8 million lbs since 2019
  • Reduced total GHG emissions by 6% in 2019

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 3

  • Creating more nutritional foods and reducing the amount of sodium and sugar in products 

SDG 5

  • Currently 41% of women in management position, the goal for 50% by 2025
  • $38.5 million put towards women empowerment programs 

SDG 6

  • Deliver safe water to millions, while reducing water usage in production

SDG 12

  • Reducing packing and waste production

SDG 13

  • Reducing GHG in all scopes

Secondary SDGs: 17

Evaluation

Frito-Lay has provided base level information of their environmental and sustainable habits. The website summary provided was minimal information, likewise with PepsiCo Corporate Social Responsibility report as it was only eight pages long. Most of Frito-Lay’s targets are focused on greenhouse gas emissions, and reducing production waste and water.

Frito-Lay is still harming the environment with the transportation and production of its products. Frito-Lay has made the basic steps towards becoming a sustainable company, with minimal data that shows they are accomplishing their SDGs. For these reasons, Frito-Lay has been given a “D” rating.

Analyst Outlook: Neutral

Frito-Lay briefly touches upon sustainability, but still has a lot of progress to make.

Key Points

  • Minimal data to back the company’s sustainability claims and brief information about the company’s efforts.
  • Frito relies on parent company, PepsiCo, for sustainability reports.
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