After outperforming analyst expectations in its Q2 2022 earnings report, PepsiCo Beverages North America (PBNA) today announced it has acquired nearly 152 acres of land in the Denver, Colorado High Point area where it will construct a 1.2 million sq. ft. manufacturing facility set to open in summer 2023.
The High Point facility is set to become PBNA’s largest U.S. plant location and its “most sustainable domestic outpost,” according to a press release. As part of its pep+ initiative, which focuses on the environment, the new plant will work to achieve 100% renewable electricity, water efficiency (1.2 gal/gal) and reduced virgin plastic use; PepsiCo hopes to cut virgin plastic from non-renewable sources across its portfolios by 50% by 2030. The facility will feature a rooftop solar photovoltaic to drive renewable energy. In January, PNBA announced a $35 million investment with Closed Loop Partners aimed at increasing access to recycling, reducing waste and unlocking a new supply of recycled plastic (rPET).
“We’re thrilled to call Denver, a city that shares so many of our values, home to PepsiCo’s most sustainable U.S. plant location,” said PBNA West Division President, Johannes Evenblij, in the release. “With the High Point facility serving a model for the future of PNBA’s supply chain, we’re eager to continue deepening our dedication to Colorado through positive impacts such as new job opportunities and more sustainable business solutions.”
The beverage company has already been in Denver for nearly 75 years with its River North Art District location, in operation since the 1950s. The new production location will hold three times the capacity of the current facility and will add nearly 250 new jobs while retaining its 250 current employees, according to the release.
In yesterday’s Q2 earnings, PBNA reported organic revenue growth of 9% while volume fell 1%.
Earlier this year, PNBA announced the $260 million expansion of its manufacturing facility in Tucker, Georgia. According to the release, the expansion was slated to increase the size of the plant by 260,000 sq. ft. and increase production five-fold by 2025.
Construction of the new Denver facility is expected to reach completion in 2023 and will produce a variety of products including Pepsi, Pepsi Zero, Gatorade, bubly, Rockstar, Propel and Muscle Milk.
“PepsiCo has been committed to our community for nearly 75 years, and we’re proud that they have chosen to deepen their roots and grow that commitment. Not only will the new facility create more quality jobs in our city, it significantly boosts their commitment to sustainability and supports my administration’s climate action efforts,” said Denver Mayor Michael B. Hancock in the release.