Engie announced a landmark 10-year agreement to supply 100% renewable biomethane to PepsiCo UK, marking the first time a biomethane producer and a food industry player have partnered on this scale in Britain. Under the deal, Engie will deliver up to 50 gigawatt-hours of biomethane annually—equivalent to the natural gas needs of approximately 8,000 UK homes—directly to PepsiCo’s production facilities in Wales and Hertfordshire. The contract is structured as a virtual power purchase agreement, providing PepsiCo UK with fixed, transparent energy costs and locking in an expected 12% reduction in greenhouse gas emissions compared with conventional gas supplies. Investors will note that this long-term supply arrangement supports PepsiCo’s goal of achieving net-zero emissions across its global operations by 2040 and is expected to lower utility cost volatility by up to £1.5 million per year over the decade.

In its latest North America report, PepsiCo disclosed that snack unit volumes declined 2.5% year-on-year in the third quarter as consumers traded traditional chips and cookies for healthier alternatives. Management highlighted that permissible snacks—products with reduced sodium, sugar or saturated fat—now represent 28% of the North America Foods portfolio, up from 22% a year earlier. To offset this headwind, PepsiCo has accelerated investment in its zero-sugar beverage lineup, which delivered 8% volume growth in the quarter and accounted for 18% of North America beverage shipments. The company plans to expand distribution of its leading zero-sugar brands by 15,000 additional retail outlets by year-end, aiming to generate $1.2 billion in incremental annual revenue. Analysts point to this beverage-driven pivot as critical for restoring overall revenue growth, given that carbonated soft drinks continue to yield operating margins above 25%, compared with mid-teens margins in the snack segment.