07 Pepsi Cola Cooler Sustainability With Hydrocarbons Soykan Dirik

Cooler Sustainability with Hydrocarbon Refrigeration Soykan Dirik PepsiCo International Marketing Equipment Manager – Europe Division United Nations Enviroment Programme Joint Europe and Central Asia (ECA) and South Asia Network meeting Istanbul, 26 April 2010

AGENDA
PepsiCo Performance with Purpose
Cold Equipment Sustainability Strategy
Progress to Date

What comes to mind thinking about PepsiCo … 03-05-10 PepsiCo Confidential

PepsiCo has 19 Global mega brands 03-05-10 PepsiCo Confidential

This makes PepsiCo the second largest Food and Beverage company world wide 03-05-10 PepsiCo Confidential Net Revenues ($B) PepsiCo International PepsiCo Americas Foods PepsiCo Americas Beverages 47% 25% 28%

PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environmental, social, economic – creating a better tomorrow than today.

Performance With Purpose Philosophy Is Based On 3 Planks Environmental Sustainability is a priority for Equipment Attract, retain and develop top world-class talent Talent Develop healthy, convenient products for all consumers Human Be responsible stewards of our planet’s resources Environment

Total Environmental Warming Impact 95% 4% 1%
Eliminated Hydrofluorcarbons (HFC) as foaming agent
All factories are compliant- worldwide
HFC Free Foam Energy Reduction
Compliant for all models with energy standards
Work with strategic suppliers on latest technology
Be the industry’s leader and focus on energy reduction
Alternative Refrigerants
Started field trials of HCs
and CO 2 in 2006
Continue to evaluate both
options globally
Build infrastructure in one
country and expand to
others
Equipment Sustainability Strategy Three strategic initiatives to Reduce green house gas emissions (GHG) Indirect from Electricity Usage Direct from HFC refirigerant in system Direct from HFC in Blowing Agent Leakage

Why Should We Do This
Alignment with corporate strategy to reduce GHG (Performance with Purpose)
Consumers and customers are asking for it
Equipment contributes considerably to GHG emission
3.0 times more electricity used annually All Pepsi Coolers & Venders All Pepsi Plants Combined PepsiCo proactively takes voluntary steps reducing carbon footprint of coolers

3 2
Efficient System & components
HC systems design
R290
R600a
CO 2 system design
Multi year plan
Global strategy
Engage stakeholders
Top Level Approach 1
Latest technology
Analytical tools
System analysis
Research Planning Development

Reducing Energy Through Research & Exploring New Technology
Pipeline of Innovative ideas and technologies
Energy roadmap – System optimization
Super efficient cooler
Energy Reduction Percentage of Energy Reduction Air Curtain - 10 hrs LED Lighting ECM Motor Energy Device Low E-Glass VCC Compressor Expansion Valve Evap. fan Cycling with Compressor Cooler/ vender Mister 25% 30% 20% 20% 12% 10% 5% 2% 10% Energy Roadmap Mathematical Model
Optimizing tools using mathematical modeling
System level approach – smart design
Compressor consumes over 50% of energy
Opportunity for better heat exchange design
Benefits Measured energy = 5.30 kwh/d Calculated energy= 5.17 Kwh/d 1.44, 28% 0.55, 11% 0.27, 5% 2.92, 56% Compressor Lighting Evaporator Fan Condenser Fan Kwh/d

HC Global Initiative- 2009 and beyond Turkey- HCs Global- HCs
Two Systems:
R600 a
R290
Establish strategic supplier in each region
Leverage learning from Turkey, Expand to Europe
Expand China - beyond field test
Plan: place 50,000 coolers by 2013
Approve HC models for NA
Field test unit in US – Jan. 2010
Expand HC to new markets – LAR, India….
Winter Olympic in Canada – CO 2 vend o rs
Build infrastructure in Turkey
Turkey has best model for service
Build capability for local suppliers
Incorporate latest technology in design
Four HCs models approved
51% less energy than baseline 29% less energy than baseline 48% less energy than baseline

Green Coolers Highlights PEPSI “GREEN” COOLER Green Cooler Energy Saving Device Day/Nignt Mode
First Cooler with HC gas in Turkey
B riefed the suppliers that Pepsi strategically support s HC
Customer concern s on cooler electricity costs supported transition
Local s uppliers developed proper equipments for the market needs
H ad the in - house technical infrastructure to support HC
PepsiCo Corporate developed Energy saving controller to reduce energy further + 20 %
First Country switching to HC for 100% of New Coolers
To retailer : “51% less energy consumption and more environmentally friendly”
To consumer : “This cooler saves 5 tre e s with i t’s energy saving t echnology”
Cooled by HC Refrigerant (R600a) & Equiped with Energy Saving Device All New Coolers G reen as of 2009 and beyond..! The key factor of the successful implementation of the alternative refrigerants in developing countries such as Turkey is that, the proposition brings commercial value to the customer while doing the right thing for the environment

HC vs. CO 2 System
HC operate at lower pressure & take less charge
HC compressor is smaller and more efficient
COP for HC is higher than R134a
Operates at 10 times higher pressure
Performance issue at high ambient
Estimate system cost (10-25)% > HFC
Hydrocarbons (HC) Systems CO 2 System- Carbon Dioxide - R744
Isobutane - R600a
Widely used in Europe for household refrigeration
Single door cooler
Propane - R290
Mainly used for low temperature applications
Double door cooler & open air
Experimental Stage
Large coolers and vending machines
Use when the charge is > 150g
PEP Pursuing Duel Strategy Based on Application and Market Regulations – HCs & CO 2

Equipment GHG Emission PepsiCo focused on energy consumption of the coolers which has 95% effect on the environment Hydrocarbon gases are high in energy efficiency and give about 30% energy saving PepsiCo promotes Hydrocarbon gases based on their energy efficiency besides GHG
Unit emission reduced
By retiring old equipment and implementing new technologies, total emissions will also decrease

Equipment Sustainability Progress to Date……… Alternative Refrigerants Energy Reduction
48% energy reduction in 2009 vs. 2004 baseline
Introduced 48 new efficient coolers in 2009
Developed super efficient cooler = 2.2 kwh/d
863,942 GHG Metric tons saving vs. 2007
44% in 2009 vs. 2004 baseline
Launched Bev Max IV- 30%
lower energy than E-star
13073 GHG Metric tons saving
vs.2007
15 HC models approved for bottlers worldwide
Expanding in Europe & Asia
Built Turkey as 100% HC
Design HC model for US market
Place 35 Units HC in US - FL
Redesigned & Optimized Beverage Max III CO 2 vending machine to meet E-star requirements
Placed 30 CO 2 vending machine in strategic location in DC area
30 CO 2 units in Winter Olympics- Canada
Coolers Vending
Total of 877,015 metric tons reduction since 2007. On Average 292,338 metric tons/year
168,000 cars in total or 56000 cars/year
Total saving 1.8 B Kwh since 2007
Increased number of green refrigerant units in the field. Exceeded commitment to R efrigerants N aturally! Group for 2009
13 , 321 Units in the field globally
1 , 372 Units R efrigerants N aturally Commitment
Green House Gas Reduction Kwh Turkey 100% “ Green” In 2009 and beyond

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07 Pepsi Cola Cooler Sustainability With Hydrocarbons Soykan Dirik

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