PepsiCo’s Brazil Farm Backs Regenerative Supply Chains

With the COP30 climate conference currently underway with its special focus on implementation and sustainability within global food systems, PepsiCo is taking proactive steps to align itself with these principles.

PepsiCo has developed a coconut "demonstration farm" in Brazil, providing a practical example of how climate action can be integrated into agricultural practices for major global brands.

This initiative reflects the conference's agenda, as described by its President, André Corrêa do Lago, as the “COP of implementation,” with a focus on food systems and biodiversity.

PepsiCo relies on sourcing almost 50 different crops from over 60 countries for its portfolio of food and drink brands. One such crop is the green coconut, the key ingredient for its Kero Coco coconut water.

In Petrolina, Brazil, PepsiCo has established a farm that serves as an educational hub for local farmers, demonstrating regenerative agriculture practices.

Intercropping to boost biodiversity and income

A key initiative at the farm is an intercropping programme. This involves growing cacao plants in the shaded areas between coconut trees.

This arrangement is mutually beneficial; the cacao thrives in the shade provided by the palms, while the coconut trees gain nutrients from the rich soil created by the cacao plants.

Local farms have begun to adopt this model, which introduces greater crop diversity. This diversification is expected to increase farmers' income by approximately 30% to 70%.

Alexsandro Castro Souza, Agricultural Manager for PepsiCo Brazil, explains: “The most rewarding aspect has been witnessing the improvement of quality of life and financial sustainability of family farmers. Seeing them embrace regenerative techniques that enhance productivity and long-term sustainability is particularly fulfilling.”

Implementing sustainable irrigation practices

The work at the Petrolina farm aligns with PepsiCo’s wider sustainability targets that include the increased adoption of regenerative agriculture and restorative practices across 10 million acres of land by 2030.

A core element of its regenerative approach on the farm is an advanced irrigation management system.

This technology calculates the precise water requirements for each coconut tree using real-time weather data on sunlight, temperature and humidity. The system then delivers the optimal amount of water directly to each tree through tailored hoses.

Jim Andrew, Chief Sustainability Officer at PepsiCo, says on LinkedIn: “Facing increasing climate risk and impacts, the global food system is fragile and in need of transformation. This matters for PepsiCo – as a company rooted in agriculture – and importantly, for the world’s ability to sustainably grow the food it needs today and in the future. This requires accelerated action and impact, at scale.”

Utilising the whole coconut for circular benefits

The Kero Coco brand is produced using only green coconuts sourced from northeastern Brazil. These are selected over mature brown coconuts because they contain a higher volume of water and have a naturally sweeter taste.

In a move toward a more circular production model, PepsiCo repurposes the outer husks of the harvested coconuts.

These husks are used as a natural fertiliser on crops. This practice helps to prevent weed growth naturally, which can reduce the need for chemical inputs, lower greenhouse gas emissions and improve moisture retention in the soil.

“Unlike annual crops such as potatoes or corn, coconut palms are produced for many years, requiring long-term planning and practices that sustain ecosystem health for over a decade,” Alexsandro says.

He adds: “Harvesting green coconuts for water demands specific methods to preserve the fruit’s integrity and ensure high quality.”