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Frito-Lay

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Suyog Karmarkar

on 23 June 2010

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Transcript of Frito-Lay

Vision of the Company

Sustainability - embedded in the vision

Something wonderful—a company that’s all about good fun—doing good things when it comes to making snacks and caring for the environment. You get a company called Frito-Lay, a proud member of the PepsiCo family.

And we're reducing our environmental footprint by conserving natural resources as well as harnessing renewable energy technology that reduces harmful emissions.

Mission- Our Planet

In order to make the best snacks on earth, we need to protect the earth. So we have committed to making sustainable products in four ways. Targets taken in 1999
50% Reduction in Water
20% in Natural Gas
30% in Electricity


Minimizing Waste Reducing Emission Saving Water Conserving Engergy Steps to a Healthier Planet



Step 01: Began reusing and recycling our shipping cartons. (1939)

Step 02: Began recovering the starch left in the water after washing potato slices to keep that water from having to be treated by cities’ waste water systems. We now recover 64 million pounds of starch per year. (1979)

Step 03: Built headquarters facility in Plano, TX. Committed to maintain 39 acres with organic fertilizer and preserve the remaining 249 acres in its natural state. (1985)

Step 04: Cogeneration system built at our plant in Kern, California to provide both steam and electricity. The cogeneration technology recycles waste heat to increase our energy efficiency in Kern to 74%. (1986)

Step 05: Green Teams of employees assembled to ensure a high level of environmental compliance and awareness at each plant. (1993)

Step 06: Set 10-year resource conservation “BHAGs” (Big Hairy Audacious Goals): reduce water consumption by 50% per pound of production, natural gas by 30%, and electricity by 25%. (1999)

Step 07: Began using gas from a nearby landfill to reduce our use of natural gas at our Rosenberg, Texas plant. (1999)

Step 08: Began recycling the water used to make potato chips. As a result of these efforts, we saved more than 570 million gallons of water in 2007 alone. (2001)

Step 09: Eliminated 150 square miles of packaging by reducing the film we use by 10% from 2002-2007. That’s enough to cover more than 72,000 football fields. (2002)

Step 10: Received first national award for our environmental sustainability efforts from the Alliance to Save Energy. (2003)



Step 11: Our Rochester, NY distribution center was certified at the LEED Gold level, one of only 50 in the country at the time. (2005)

Step 12:Joined EPA’s Climate Leaders program, pledging to reduce US greenhouse gas emissions by 14% per pound of production from 2002 to 2010. (2005)

Step13: Improved the performance of our bags to extend the shelf life, enabling us to save 5 million pounds of packaging and product each year. (2005)

Step 14: Frito-Lay named the Energy Star Partner of the Year for the first time, the only Consumer Packaged Goods company to receive this award. Frito-Lay’s parent company, PepsiCo, has been named an Energy Star Partner of the Year in 2007, 2008, and 2009 earning the Sustained Excellence distinction. (2006)

Step 15: Installed the first “oven heat recovery” system at our plant in San Antonio, Texas. Some of our plants use the exhaust heat from our ovens to heat the oil in our fryers while other plants use it to heat their buildings. (2006)

Step 16: Frito-Lay leads parent company PepsiCo’s purchase of renewable energy certificates (RECs) to match 100% of the electricity used by PepsiCo’s US facilities marking the largest RECs purchase in history at the time. (2007)

Step 17: Our plant in Jonesboro, AR is named to the Environmental Protection Agency’s (EPA) National Environmental Performance Track Program for its superior commitment to continuous environmental improvement. Since 2007, seven other facilities have earned the Performance Track distinction. (2007)

Step 18: Began testing technology that captures and condenses the steam emitted when cooking our chips so the water can be reused. (2007)


Step 19: Installed Arizona’s largest corporate solar power system at the time at our Arizona Service Center. In 2008, The Gatorade Company, another division of PepsiCo, installed an even bigger solar power system at the Gatorade manufacturing and distribution facility in Arizona. (2007)


Step 20: Reduced the diesel fuel we would have used in 2007 by more than 13 million gallons through driver training and by making changes to our trucks like idling technology and increased aerodynamics. Our reductions in 2007 would be enough to fuel more than 11,000 school buses for a year. (2007)




Step 21: Finished converting our fleet of 650 sales cars to hybrid vehicles. (2007)


Step 22:Successfully tested a package made partially from renewable materials as a first step to a fully compostable bag. (2007)

Step 23: Successfully reached our first resource conservation “BHAG” (Big Hairy Audacious Goal) by achieving a reduction of 30% less natural gas per pound of production compared to 1999. By 2008, we had also achieved reductions of 39% water and 22% electricity per pound of production compared to 1999. (2008)


Step 24: Achieved 96.8% shipping carton reuse rate – nearly 97 of every 100 cartons used to ship our products is brought back to be used again. We reuse each shipping cartons an average of five times before recycling it, an effort that now saves 5 million trees every year. (2008)

Step 25: Solar power is used at one of our plants in Modesto, CA to help make SunChips snacks. (2008)


Step 26: Earned the Sustainable Forestry Initiative’s certification on our Miss Vickie’s brand’s paper packaging guaranteeing that our paper is sourced from sustainable forests that help fight deforestation. (2008)


Step 27: The temporary in-store displays holding our bags are now made from 90% recycled material. (2008)


Step 28:Began piloting a “zero landfill” program in 4 plants with the goal of reducing waste to less than 1%. (2008)


Step 29: Launched the LEED Certification Challenge at our Head2uarters in Plano, TX. Employees helped save energy and eliminate waste to earn points toward LEED certification for our Headquarters building. We hope to finalize the certification by Summer 2009. (2008)


Step 30: Installed a solar hot water heater at our Headquarters building to heat the water in our kitchen and dish room. (2008)




Step 31: Tested new Sprinter trucks that get 50% more miles per gallon than the trucks they will replace. (2008)


Step 32:Reset the resource conservation BHAGs (Big Hairy Audacious Goals) we originally set in 1999. The new goals are to reduce water usage by 75% per pound of production, natural gas by 50%, and electricity by 45% by 2017. (2008)


Step 33: Began installing the technology at our plant in Casa Grande, Arizona that will help reduce our fresh water use by up to 90%. (2008)


Step 34: Introduced a partnership with TerraCycle to reward employees and consumers for helping to keep our used chip bags out of landfills. TerraCycle gives the used packaging a second life by turning it into new consumer products like tote bags and clipboards. The products will be available in retailers in Summer 2009. (2009)


Step 35:All Frito-Lay plants are currently working toward “zero landfill” with the goal of diverting at least 99% of waste from landfills. (2009)



Step 36: Introduced 1,000 new Sprinter trucks that get 50% more miles per gallon than the trucks they replaced. (2009)


Step 37: 33% of our 10 ½ oz size SunChips snacks package is made from renewable resources. (2009)


Step 38:Began piloting a program to encourage and equip employees to adopt “personal sustainability practices.” (2009)


Step 39: Began operation of our cogeneration system to produce electricity and steam at our plant in Killingly, Connecticut, raising our energy efficiency at that plant to 90%. (2009)



Step 40:Expect to receive LEED certification for our Headquarters building. (2009)




Step 41: Expect to begin building the solar field and the renewable energy generator at our plant in Casa Grande, Arizona. (2009)



Step 42:In 2010, we plan to start using fully compostable packaging for our 10 ½ oz size bags of SunChips snacks. (2010)


Step 43: At our Casa Grande, AZ plant we are working to cut our electricity and water by 90%. By early 2011, we’ll complete the retrofit to enable our Casa Grande plant to run almost entirely on renewable energy and recycled water while reducing waste going to the landfill to less than 1%. (2011)



Step44: We will continue working to find more opportunities to utilize renewable energy, reduce our water usage, and eliminate waste. (TBD)



Step 45:We will continue developing the technology to enable all of our packaging to utilize renewable materials. (TBD)



Step 46: We intend to eventually make all of our packaging fully compostable. (TBD)




How can green initiatives and environmentally sustainable business practices win out in the marketplace? Frito-Lays’ SunChips is a Brilliant Example of “Doable” Green Marketing and Sustainability Marketing SunChips marketers know consumers want a tangible, functional products with a green benefit.
web site
advertising

How they deliver message? How does Sustainability Fit Into the Value Chain? Present Core Activities
Inbound Logistics Began reusing and recycling shipping cartons. (1939)

Achieved 96.8% shipping carton reuse rate (2008)

Miss Vickie’s brand’s paper is sourced from sustainable forests (2008)
Reduce Waste The water used to make potato chips is recycled. (2001)
Began testing technology that captures and condenses the steam emitted when cooking chips so the water can be reused. (2007) Manufacturing Reduce Water Cogeneration system built at first plant. Efficiency gained: 74%. (1986) Conserve Energy Eliminated 10% of film used in packaging. (2002)

33% of 10 ½ oz size SunChips snacks package is made from renewable resources. (2009)

started using fully compostable packaging for some 10 ½ oz size bags of SunChips snacks. (2010) Reduce Waste Began using gas from a nearby landfill (1999)
Installed “oven heat recovery” system at plant. (2006)
Solar power is used at one plant to help manufacture SunChips. (2008)
Deployed cogeneration system at second plant. Efficiency gained: 90% (2009)
Outbound
Logistics Improved the performance of bags to extend the shelf life. (2005)

Successfully tested a package made partially from renewable materials as a first step to a fully compostable bag. (2007) Reduce Waste Reduced diesel fuel consumption in 2007 by more than 13 million gallons. (2006)

Finished converting fleet of 650 sales cars to hybrid vehicles. (2007)

Introduced 1,000 new Sprinter trucks that get 50% more miles per gallon than the trucks they replaced. (2009)
Reduce Emissions Future Definied Value Chain Activities Plants are currently working toward “zero landfill”
Piloting a program to encourage and equip employees to adopt “personal sustainability practices.”
Plans to install solar field and renewable energy generator one plant in AZ. Future Undefined Value Chain Activites continue working to find more opportunities









100% renewable materials

100% compostable Manufacturing Manufacturing Outbound
Logistics Conclusion introducing a fully compostable chip bag in 2010
Health & sustainsable Advertising Social Sustainability?
Full transcript