PepsiCo pumps R746 million into South Africa
Lay’s and Simba owner PepsiCo South Africa has announced that it has expanded its Isando factory in Gauteng with a new state-of-the-art potato chip production line in a R746 million investment.
In a statement, the company said that this is set to create 100 jobs “and position the company to meet the growing appetite for snack foods,” across Southern African markets.
PepsiCo South Africa said that the significant investment at the Isando facility, located near key potato-growing regions in Johannesburg, eliminates the need for long-distance transportation of potato chips from its Parow and Durban plants.
The company said that this reduces both transportation costs and carbon emissions by cutting out over 2.2 million kilometers and more than 2,300 cross-country shipments each year.
PepsiCo South Africa operates four potato chip production lines across three plants, all at high capacity. It retained these when it first acquired Pioneer Foods in 2020, for about R24 billion
They said that adding a new line at Isando will boost production capacity and improve supply chain efficiency.
“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.
“Alongside creating new jobs, this new line shows our commitment to innovation and efficiency, as we continue to deliver high-quality products to people,” added Heyl.
The installation of the new production line involved local suppliers, and ongoing operations have created additional indirect jobs, benefiting small and medium-sized businesses in South Africa.
“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.
“We are excited about the potential for this investment to drive economic growth and job creation,” he added.
Other investments
PepsiCo South Africa, in partnership with the Department of Trade, Industry and Competition, invested R100 million in an anaerobic digester plant at its Isando facility.
This plant converts organic waste, such as rejected potatoes, peels, and other by-products, into biogas, a sustainable energy source.
The biogas powers a gas-fired engine, generating up to 780kW of electricity, which covers around 30% of the Isando plant’s peak energy needs.
“These combined investments drive efficiency while championing sustainability in support of our PepsiCo Positive strategy, which is not just a business strategy; it’s a transformative journey across our operations, from production to marketing to distribution,” said Heyl.
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