PepsiCo’s Major Investment in South Africa

PepsiCo Pumps R746 Million Into South Africa

Global food and beverage giant PepsiCo has announced a significant R746 million investment in South Africa, expanding its Isando factory in Gauteng with a state-of-the-art potato chip production line.

This expansion, which will create 100 new jobs, reflects the company’s commitment to meeting the growing demand for snack foods across Southern Africa while supporting local economic growth and sustainability.

Boosting Capacity and Efficiency

The new potato chip production line is strategically located near Johannesburg’s key potato-growing regions, reducing the need for long-distance transportation from PepsiCo’s Parow and Durban plants.

By cutting over 2.2 million kilometers of transport and more than 2,300 cross-country shipments annually, the company is slashing transportation costs and significantly lowering carbon emissions.

“Expanding our potato chip production capacity is an important move to meet the growing demand for South Africa’s much-loved snacks,” said Riaan Heyl, CEO of PepsiCo South Africa.

The new production line not only boosts capacity but also improves supply chain efficiency. Its installation involved local suppliers, creating indirect jobs and benefiting small and medium-sized businesses.

Sustainability at the Core

PepsiCo’s investment aligns with its global PepsiCo Positive (pep+) strategy, which focuses on sustainable growth.

The Isando facility now houses a R100 million anaerobic digester plant, developed in partnership with the Department of Trade, Industry, and Competition. This innovative plant converts organic waste, such as potato peels and rejected potatoes, into biogas, which powers a gas-fired engine.

This engine generates up to 780kW of electricity, covering 30% of the facility’s peak energy needs and reducing its reliance on traditional energy sources.

“These combined investments drive efficiency while championing sustainability in support of our PepsiCo Positive strategy,” said Heyl.

Economic Growth and Job Creation

PepsiCo’s efforts extend beyond sustainability, driving job creation and boosting the South African economy. The new production line creates direct employment opportunities while fostering growth for local suppliers and businesses.

“This investment aligns with our long-term strategy to innovate and grow sustainably, ensuring that we are one of the leading food and beverage companies in South Africa,” said Heyl.

PepsiCo’s Commitment to South Africa

PepsiCo has been a significant player in South Africa since its R24 billion acquisition of Pioneer Foods in 2020. Its investments in local facilities demonstrate a long-term commitment to economic development, innovation, and sustainability in the region.

As PepsiCo continues to innovate and expand, South Africa stands to benefit from new jobs, enhanced production capacity, and a more sustainable future.