PepsiCo South Africa said it used local suppliers in the installation of this line. It added that further indirect employment has been created through the continued use of local contractors, which supports the growth of South African small to medium enterprises. Picture: Supplied
PepsiCo South Africa’s R746 million investment expanding its Isando factory in Johannesburg with a new state-of-the-art potato chip production line will create 100 more jobs.
The global company yesterday said this project will position it to meet the growing appetite for snack foods in Southern Africa as well as the export markets.
Riaan Heyl, CEO of PepsiCo South Africa, said expanding the company’s potato chip production capacity was an important move to meet the growing demand for South Africa’s much-loved snacks.
“Alongside creating new jobs, this new line shows our commitment to innovation and efficiency, as we continue to deliver high-quality products to people,” Heyl said.
Potato chips make up a significant part of the company’s snack production, making it an important part of the business. Currently, PepsiCo South Africa operates four potato chip production lines across three plants, all running at more than 85% capacity. Adding this new line will increase the production capacity of the facility by 29% and increase efficiency in the supply chain.
PepsiCo South Africa said it used local suppliers in the installation of this line. It added that further indirect employment has been created through the continued use of local contractors, which supports the growth of South African small to medium enterprises.
“This investment aligns with our long-term strategy to innovate and grow sustainably, ensuring that we are one of the leading food and beverage companies in South Africa. We are excited about the potential for this investment to drive economic growth and job creation.”
According to the South Africa Savory Snacks Market - a report that covers potato chips - the market size of extruded snacks, nuts, seeds and trail mixes, popcorn, meat snacks and other product types is estimated at $1.78 billion (R32bn) in 2024 and is expected to reach $2.58bn by 2029.
PepsiCo said the inclination toward Western food habits and the busy lifestyles of working professionals and students have propelled consumers to shift from elaborate luncheons to packaged and ready-to-consume meals. It said this represents one of the major factors driving the demand for savory snacking options in South Africa.
In addition to supporting the expansion of the production line, PepsiCo South Africa, in collaboration with the Department of Trade Industry and Competition, also invested R100m in an anaerobic digester plant at the Isando factory.
The plant transforms the organic solid waste of reject potatoes, peels, and other remnant materials generated at the site (which are inevitable by-products of the manufacturing process) into biogas, a clean and renewable source of energy, that will be used to fuel a gas-fired engine generating up to 780kW of electrical energy for use at the facility (~30% of the Isando factory’s peak electrical demand).
“These combined investments drive efficiency while championing sustainability in support of our PepsICo Positive strategy, which is not just a business strategy; it's a transformative journey across our operations, from production to marketing to distribution,” Heyl said.
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