Loop Industries, Inc. (Nasdaq: LOOP), a leading technology innovator in sustainable plastic and PepsiCo, Inc. (NASDAQ: PEP) today announced that they have entered into a multi-year supply agreement that will enable PepsiCo to purchase production capacity from Loop's joint venture facility in the United States and incorporate Loop™ PET plastic, which is 100% recycled material, into its product packaging by early 2020.
As the demand for sustainable packaging solutions continues to grow, Loop Industries has emerged with truly transformational technology that allows no and low value plastics to be diverted, recovered and recycled endlessly into new, virgin-quality Loop™ PET plastic. This innovation allows plastic bottles and packaging of any color, transparency or condition, carpet, clothing and other polyester textiles that may contain colors, dyes or additives, and even ocean plastics that have been degraded by sun and salt to meet FDA requirements for use in food-grade packaging.
As one of the largest purchasers of recycled PET plastic in the consumer goods space, PepsiCo has identified Loop™ PET as a commercially viable technology to expand the amount of recycled content in its product packaging and help meet its sustainability ambitions and consumer needs. This agreement aligns with PepsiCo's Performance with Purpose vision and highlights the company's commitment to adopt different and creative approaches to the challenges of plastics and waste.
"Loop's technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste," said Dr. Mehmood Khan, Vice Chairman and Chief Scientific Officer, PepsiCo. "This partnership represents a step-change that will empower PepsiCo in our drive towards creating a circular economy for plastics."
"We are very proud to supply PepsiCo with Loop™ branded PET plastic," said Daniel Solomita, Founder and CEO of Loop Industries. "Working with a global food and beverage giant like PepsiCo will further establish the value proposition of the Loop brand and mission - to accelerate the world's shift toward sustainable plastic and away from the traditional, take, make and dispose economy."
The deal will also include a marketing and communications plan to raise awareness of the importance of recycling, sustainability and the circular economy.