Miami Beach Approves First Plastic-Free Pouring Rights Deal with PepsiCo Beverages North America, Worth $2.3M

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Mar 16, 2022, 08:00 ET

— The contract requires plastic-free options for soda and water —

MIAMI BEACH, Fla., March 16, 2022 /PRNewswire/ -- The Miami Beach City Commission voted unanimously on Wednesday, March 9 to approve a 10-year nonalcoholic pouring rights agreement with PepsiCo Beverages North America (PBNA), a division of PepsiCo. The agreement stipulates the beverage company must provide packaged water and soda in aluminum packaging and is worth approximately $2.3 million in cash and in-kind.

"I am proud that our City used its brand and purchasing power to advance this environmental goal," said Mayor Dan Gelber. "PBNA clearly understands the importance of our PlasticFreeMB initiatives, and we look forward to a successful partnership over the next decade."

Plastics are permitted for sports drinks and a few other categories where plastic-free alternatives were not yet available in sufficient quantities. Both the City of Miami Beach and PBNA has agreed to look at all future possibilities for plastic-free categories as they arise.

"I'm very excited that our city is leading the way with this initiative," added Commissioner Alex Fernandez, who sponsored the item. "Our community spoke out on its sustainability concerns and PBNA listened — offering a completely plastic-free agreement for the water and soda categories."

The pouring rights agreement, negotiated on behalf of the City of Miami Beach by the Oak View Group, applies to city buildings, including the Miami Beach Convention Center, Flamingo Park Tennis and Aquatics Center, the Scott Rakow Youth Center as well as beachfront concessions.

"We are grateful that the City of Miami Beach shares our commitment towards a sustainable future," said Paul Mihovilovic, Vice President, Foodservice, PBNA South Division. "As part of our recently launched pep+ initiative, we have set ambitious transformative goals within our company to reduce our plastic use and create recyclable, compostable and biodegradable options for our consumers. We are placing sustainability at the heart of our business, and we hope to inspire positive change for the planet and people."

PepsiCo brands include Pepsi, Mountain Dew, SodaStream, Starbucks, Gatorade, Bubly Sparkling Water, as well as partner brands Proud Source Water, Dr Pepper, Crush, Tropicana and Naked.

"I am thrilled with the new PBNA proposal which is plastic-free for soda and water and represents a better value for our city, visitors, and tourism-based economy," added Miami Beach resident and environmental advocate Dave Doebler. "This contract can change the direction of the entire beverage industry and leave a tremendous legacy for all of us! The most important step after awarding the contract is partnering with PBNA to establish an effective recycling plan to reclaim this valuable material and quickly get it back on the store shelves as another beverage can."

This agreement will replace a previous agreement with Coca-Cola, which expired on Dec. 31, 2021.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $79 billion in net revenue in 2021, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with PepsiCo Positive (pep+). pep+ is our strategic end-to-end transformation that puts sustainability at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com.

SOURCE PepsiCo Beverages North America