As part of the deal, the beverage maker will also incorporate Loop PET plastic into its product packaging by early 2020.
The deal highlights the company’s commitment to adopt alternative approaches to the challenges of plastics and waste.
PepsiCo vice chairman and chief scientific officer Mehmood Khan said: “Loop’s technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste.
“This partnership represents a step-change that will empower PepsiCo in our drive towards creating a circular economy for plastics.”
The partnership will also focus on raising awareness of the importance of recycling, sustainability and the circular economy through a marketing and communications plan.
According to PepsiCo, Loop PET will assist the company to increase recycled content in its product packaging, as well as meet its sustainability goals and consumer needs.
Loop Industries founder and CEO Daniel Solomita said: “We are very proud to supply PepsiCo with Loop-branded PET plastic.
“Working with a global food and beverage giant like PepsiCo will further establish the value proposition of the Loop brand and mission to accelerate the world’s shift toward sustainable plastic and away from the traditional, take, make and dispose economy.”
Leveraging its technology, Loop produces PET plastic from fossil fuels by depolymerising waste polyester plastic to monomers. Plastic bottles and packaging produced using Loop PET plastic meet FDA requirements for use in food-grade packaging.