Frito-Lay North America, Inc 7701 Legacy Dr, Plano, TX 75024
- #39 World’s Most Valuable Brands 2020
- #384 America’s Best Employers 2016
CHIEF SUSTAINABILITY OFFICER
Report created by Cec Ehrhard
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.
- 100% sustainable sourced corn and potatoes
- 100% production converted to natural gas from renewable resources
- 100% LED lighting
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
- 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
- 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
- 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
UN Sustainable Development Goals
UN SDGs Compliance
- Creating more nutritional foods and reducing the amount of sodium and sugar in products
- Currently 41% of women in management position, the goal for 50% by 2025
- $38.5 million put towards women empowerment programs
- Deliver safe water to millions, while reducing water usage in production
- Reducing packing and waste production
- Reducing GHG in all scopes
Secondary SDGs: 17
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.
- 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.