PepsiCo UK has secured a landmark 10-year biomethane supply agreement with French utility Engie, representing the first partnership of its kind between a biomethane producer and a major food industry player in Britain. Under the terms of the deal, Engie will deliver renewable gas equivalent to approximately 60 GWh per year, enough to cover roughly 20% of PepsiCo UK’s annual gas demand. The arrangement is projected to avoid more than 10,000 tonnes of CO2 emissions annually, aligning with PepsiCo’s target to achieve net-zero absolute emissions by 2040 across its global operations.

PepsiCo’s North America snack volumes declined by 1.8% year-on-year in the fourth quarter of 2025, pressured by changing consumer preferences and trade-down behavior. To offset this slowdown, the company is prioritizing permissible snacks (those meeting stricter nutritional guidelines) and zero-sugar beverages, which together grew volumetrically by 6.5% globally in Q4. The zero-sugar beverage portfolio, led by Pepsi Zero Sugar and Tropicana Zero, contributed to a 4.2% gain in total beverage revenues, underscoring management’s confidence that health-oriented innovations can stabilize top-line performance.

With a market capitalization of $191 billion, PepsiCo has raised its dividend for 53 consecutive years, earning status as both a Dividend Aristocrat and Dividend King. The company’s 10-year dividend growth rate stands at 7.4%, reflecting disciplined cash-flow generation. Revenue has expanded from $63.1 billion in fiscal 2015 to $91.9 billion in fiscal 2024, a compound annual growth rate of 4.3%. Operating cash flow exceeded $10 billion in FY 2024, enabling continued share repurchases and dividend increases despite short-term volume headwinds in snacks.