PepsiCo and L’Oreal Launch Innovative Packaging and Labeling Strategies

Liz Dominguez
Managing Editor
Liz Dominguez profile picture
SodaStream Professional - University
SodaStream Professional - University; Courtesy of PepsiCo

Packaging and labeling are areas ripe for innovation, with opportunities to improve efficiencies, better communicate with consumers, solve accessibility roadblocks, and be more mindful of sustainability-focused initiatives.

PepsiCo and L’Oreal USA are the latest consumer goods companies to transform their packaging and labeling, launching new strategies that will impact various aspects across the value chain.

PepsiCo will be doubling the percentage of beverage services it sells delivered through reusable models from 10% to 20% by 2030. To achieve this new goal, the company will be expanding its SodaStream Professional business, collaborating with PepsiCo bottlers to build out refillable plastic and glass bottle offerings, and driving accelerated growth in powders and concentrates. This includes PepsiCo’s Gatorade, Propel, Muscle Milk, and Evolve brands, which will continue to offer these options so consumers can customize their drinks in their own containers. 

The approach will impact the more than 80 global markets in which PepsiCo offers reusable packaging solutions. These include Mexico, Guatemala, Colombia, Chile, Germany, and the Philippines, where PepsiCo has refillable and returnable glass and plastic programs. 

The company will be developing new infrastructure to support this model across the value chain, continuing to work with several partners like the Closed Loop Partners NextGen Consortium and the Ellen MacArthur Foundation to design and test new models to enable the scale up of reusable cups. 

[Read more: PepsiCo Beverages North America Building ‘State-of-the-Art’ Manufacturing Facility]

"Fundamentally transforming the traditional beverage consumption model will require making reusable and refillable options accessible and convenient, at scale, for consumers — and that's what PepsiCo aims to do," said Jim Andrew, chief sustainability officer, PepsiCo, in a statement. 

"PepsiCo will accelerate our investment in disruptive innovation and advocate for policies that allow us to scale up reusable packaging options, platforms and programs so that we can offer consumers a wide variety of alternative ways to enjoy their favorite beverages while moving away from reliance on single-use packaging,” Andrew added. 

L’Oreal’s Product Impact Labeling System

Product Impact Labeling, Courtesy of L’Oréal USA
Product Impact Labeling; Courtesy of L’Oréal USA

L’Oreal USA is increasing consumer transparency by launching its Product Impact Labeling system. Online shoppers will gain visibility into the environmental impact of the product they purchase compared to other L’Oreal products in that same category. 

Products are ranked on a scale from A to E, taking into consideration 14 planetary impact factors like greenhouse gas emissions, water scarcity, ocean acidification, and impact on biodiversity, across every stage of a product's life cycle.

The new information can be found on online product labels following the ingredient list.

The initiative, which first launched in France in 2020, is pioneered by Garnier’s hair products and will roll out to other brands such as Kiehl’s,  L'Oréal Paris, Redken, and CeraVe. 

The company will be sharing its learnings as a result of the labeling initiative with the 60 members of the EcoBeautyScore Consortium, to develop an industry-wide environmental impact assessment and scoring system for cosmetics products. L'Oréal will be transitioning to the EcoBeautyScore once it becomes available in late 2023.

"L'Oréal's Product Impact Labeling system is a core component of the L'Oréal for the Future program, which outlines our sustainability commitments for 2030. Its rollout in the United States has the power to help change consumer behavior and, therefore, accelerate the beauty industry's progress toward greater sustainability," said Marissa Pagnani McGowan, chief sustainability officer for North America, in a statement.

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