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PepsiCo Expands Regenerative Ag, Commits Billions to India Growth

By Editorial21 May 20264d ago
PepsiCo Expands Regenerative Ag, Commits Billions to India Growth

PepsiCo is making significant moves across two fronts: expanding regenerative agriculture sourcing in Canada and investing heavily in India's manufacturing footprint.

Regenerative Agriculture in Saskatchewan

PepsiCo and Louis Dreyfus Co. (LDC) are scaling a regenerative agriculture program in Saskatchewan, Canada, where the province is a global leader in canola production. The program aided 16 farmers across 25,000 acres in 2025, producing approximately 26,000 tonnes of canola grown using regenerative agriculture practices consistent with the program framework. The goal for 2026 is to expand these regenerative and restorative practices across 45,000 acres.

The collaboration aims to support soil health, reduce greenhouse gas emissions, and protect local ecosystems. Farmers participating in the program access advisers through the Canadian Prairies Trusted Advisor Partnership (TAP), which provides science-based guidance on scaling regenerative practices. Program results will be measured using the Cool Farm Tool, which provides standardized metrics to estimate and track indicators such as farm-level emissions and biodiversity.

India Manufacturing Expansion

PepsiCo will invest up to ₹5,700 crore in India by 2030, primarily to expand its foods manufacturing capacity across three facilities in Madhya Pradesh, Assam and Tamil Nadu. Two facilities are close to operational: a concentrates plant in Madhya Pradesh and the Northeast plant in Assam are expected to go live in the next few months. PepsiCo recently purchased land in Tamil Nadu to open a massive footprint in the South for its snacks business.

India remains one of PepsiCo's top 13 global markets. PepsiCo India posted a profit after tax of ₹905 crore for the 12 months ended December 2025, on total revenue of ₹9,789 crore, delivering strong double-digit growth for the second consecutive year. Foods was the stronger of the two segments, growing around 11 percent in 2025, while beverages had a softer year as weather conditions weighed on demand and competition increased. The company enters 2026 with over ₹1,600 crore of cash on its books.

New Product Innovation

PepsiCo is launching Pure Leaf Mental Focus, a functional, ready-to-drink sparkling iced tea formulated with 69 mg of caffeine and L-theanine to support focus. The product is launched in partnership with gymnast Jordan Chiles and is available in peach and raspberry flavors. The tea is available for purchase nationwide.

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