Frito-Lay North America: The Making of a Net Zero Snack Chip

13 Pages Posted: 10 Jun 2009 Last revised: 4 Jan 2019

See all articles by Andrea Larson

Andrea Larson

University of Virginia - Darden School of Business

William Teichman

University of Virginia - Darden School of Business

Abstract

Implementing a sustainability strategy requires firms to consider economic, strategic, environmental, and community perspectives. Suitable for MBA, undergraduate, and executive learners, this sustainability case covers innovation, intrapreneurship, and strategy. A technical note entitled, “Corporate Greenhouse Accounting: Carbon Footprint Analysis” (UVA-ENT-0113) is an effective complement. Frito-Lay's Arizona facility pilots a program to take its snack chip manufacturing off the grid. Decision makers discuss operating, financial, marketing, and corporate strategy as the facility calculates its carbon footprint, converts to non-fossil-fuel energy sources, and stops relying on the scarce local water supply.

Excerpt

UVA-ENT-0112

Rev. Dec. 17, 2018

Frito-Lay North America: The Making of a Net Zero Snack Chip

It was late 2007, and Al Halvorsen had assembled his team of managers from across Frito-Lay North America (FLNA) to make a final decision on an ambitious proposal to take one of its nearly 40 manufacturing plants “off the grid” through the installation of cutting-edge energy- and water-saving technologies. After a decade of successful initiatives to improve the productivity of operations and to reduce the energy and other resources used in the production of the company's snack products, senior managers had decided that it was time to take their efforts to the next level.

Frito-Lay's resource conservation initiatives had started in the late 1990s. Company managers recognized potential operating challenges as they faced rising utility rates for water, electricity, and natural gas, increasing resource constraints, and expected government-imposed limits on greenhouse gas emissions. These challenges had implications for the company's ability to deliver sustained growth to its shareholders.

The programs the company had put in place resulted in a decade of efficiency improvements, leading to incremental reductions in fuel consumption, water consumption, and greenhouse gas emissions. Each project's implementation helped the operations and engineering teams within the organization to grow their institutional knowledge and expertise in a range of emerging technologies.

. . .

Keywords: triple bottom line, net zero

Suggested Citation

Larson, Andrea and Teichman, William, Frito-Lay North America: The Making of a Net Zero Snack Chip. Darden Case No. UVA-ENT-0112. Available at SSRN: https://ssrn.com/abstract=1417218

Andrea Larson (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/larson.htm

William Teichman

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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