PepsiCo South Africa has announced a massive R746 million investment into a new state-of-the-art potato chip production line at its Isando factory in Johannesburg. This expansion is set to generate 100 new jobs, reinforcing the company’s commitment to economic growth and sustainability in South Africa.
Expanding Snack Production to Meet Growing Demand
PepsiCo aims to address the increasing demand for snack foods across Southern Africa and export markets. CEO Riaan Heyl highlighted that the additional production capacity is vital to meet consumer needs.
“Alongside creating new jobs, this new line shows our commitment to innovation and efficiency, as we continue to deliver high-quality products to people,” said Heyl.
Potato chips are a cornerstone of PepsiCo South Africa’s snack operations, with the company already operating four production lines across three plants. These facilities run at over 85% capacity, underscoring the need for expansion. The new production line will increase the Isando factory’s capacity by 29%, while also streamlining the supply chain.
Boost for Local Suppliers and SMEs
In constructing the new production line, PepsiCo prioritised local suppliers, creating additional indirect employment opportunities. Local contractors were employed, boosting small and medium-sized enterprises (SMEs) in the process.
“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,” PepsiCo said.
South Africa’s Growing Appetite for Snacks
South Africa’s savory snacks market is booming, with its market size projected to grow from R32 billion in 2024 to R47 billion by 2029. The shift towards ready-to-eat snacks, driven by busier lifestyles and changing dietary preferences, has played a significant role in this growth.
PepsiCo noted that the rising popularity of Western-style food and convenient snack options among working professionals and students has further fueled demand.
Sustainability at the Core of Operations
In addition to the production line expansion, PepsiCo South Africa has invested R100 million in a cutting-edge anaerobic digester plant at the Isando factory. This facility transforms organic waste—such as reject potatoes and peels—into biogas, a renewable energy source.
The biogas powers a gas-fired engine that generates 780kW of electricity, meeting nearly 30% of the factory’s peak electrical 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.
Driving Economic Growth and Sustainability
PepsiCo’s R746 million investment reflects its dedication to fostering local economic development while ensuring environmentally conscious operations. By supporting job creation, sustainability, and local suppliers, the company is setting a benchmark for responsible business practices in South Africa.
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