PepsiCo and Walmart support regenerative agriculture

Following the footsteps of Nestlé, PepsiCo and Walmart support regenerative agriculture across more than two million acres of farmland

Jointly announced by PepsiCo and Walmart the two have entered into a seven-year collaboration, investing US$120m you support US and Canadian farmers pursuing the improvement of soil health and water quality. 

How will PepsiCo and Walmart help farmers in North America?

Following in the footsteps of Nestlé - who is currently investing in its Digiorno Pizza brand to help farmers through a combination of financial support and technical resources, and assistance - PepsiCo and Walmart will be establishing and scaling financial, agronomic, and social programmes to enable and accelerate the adoption of regenerative agriculture practices. 

With this investment, the two aim to deliver four million metric tonnes of greenhouse gas (GHG) emissions reduction and removal across two million acres of farmland by 2030.

"From my perspective, embracing regenerative agriculture is essential. It's good for farmers, not only because it's beneficial to the environment and our food quality, but also for the profitability of our businesses. If you use less fertilizer and you grow a bigger crop, or if you use less water and can still grow the same size of crop, it strengthens your farm in a way that benefits the bottom line and our environment for generations to come,” said Jeff Huffman, Owner & Operator of Island Farms LLC in Maxwell, Neb.

Dependant on farmers to make delicious products

Being dependent on farmers to grow ingredients for its delicious products consumed by customers every day, PepsiCo and Walmart have an extensive supply chain that stretches across North America and includes potatoes, oats, corn, wheat, soybean and rice. 

With this collaboration the two offer a voluntary and flexible approach to regenerative agriculture, giving farmers a seat at the table and recognising both the diversity of agriculture and that ‘one size does not fit all’. 

"Successful sustainability starts and ends with trust. At PepsiCo, we work very hard to earn the trust of the farmer so they understand that we are investing in their legacy and they can hand their farm down to the next generation. Farmers know their business better than anyone else, and what we hear from them is that for regenerative agriculture to make business sense, three things need to happen. They need economic support, social and cultural support, and agronomic support. This strategic collaboration with Walmart will advance our shared goal to have farmers' backs as they transform farming in a way that benefits the planet and people,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. 

Adding to Andrew’s comments, Jane Ewing, Senior Vice President for sustainability at Walmart said: "At Walmart, our sustainability strategy is built to make the everyday choice the sustainable choice for our customers. This collaboration with PepsiCo is a great example of how we are prioritizing the expansion of regenerative agricultural practices among farmers across North America so that we can continue to make quality products affordable and accessible for customers. This collaboration aims to help elevate farmer livelihoods, engage them on how to more sustainably manage soil health, increase yields and create a model that others can mimic across other product categories, including encouraging additional investments in regenerative agriculture by other brands.”

A shared focus on farming communities

Having a shared focus when it comes to supporting farming communities as well as improving soil and water health and lowering emissions, a resilient food system is essential to both PepsiCo and Walmart. 

The investment also furthers PepsiCo’s ability to meet ambitious pep+ goals, which include driving the adoption of regenerative agriculture practices across seven million acres by 2030, reducing absolute GHG emissions by more than 40% across its entire value chain by 2030, and striving to be net zero by 2040. 

It also adds to Walmart’s efforts to accelerate the adoption of regenerative practices in line with its goal to protect, restore or more sustainably manage 50 million acres of land and one million square miles of ocean by 2030.

"This effort is a new model for PepsiCo, marking our first, large-scale strategic collaboration focused on sustainable agriculture with a retail partner. Farmers are critical to our business, and many of the brands our consumers know and love rely on ingredients that we source straight from the farm. By joining forces with Walmart, we'll be empowering farmers through education, upfront investment in outcomes, peer coaching, and cost-sharing – and hopefully inspiring others to join us,” said Steven Williams, Chief Executive Officer, PepsiCo Foods North America. 


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