PepsiCo Signs Five Startup Agreements to Scale Sustainable Agriculture and Circularity in APAC

PepsiCo has signed letters of intent with five sustainability startups to explore expanding their technologies across its Asia Pacific operations, following the completion of its seven-month Greenhouse Program APAC 2026: The IMPACT Edition. Announced on 19 October 2026, the agreements involve Adiona, Bali Waste Cycle, Beijing AIForce Tech, Takachar and X-Centric Sciences, covering electric agricultural machinery, soil monitoring, biochar production, packaging recycling and logistics optimisation.

The initiative aims to address a challenge facing climate technology startups: moving from successful pilot projects to sustained commercial deployment. Since launching its Asia Pacific Greenhouse Program in 2023, PepsiCo has worked with 30 startups and supported 22 pilots across sustainable agriculture, circularity and climate solutions. The 2026 edition focused on evaluating whether technologies already tested within PepsiCo's operations could be expanded across markets, supply chains and production systems.

 

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Electric Tractors and Soil Technology Advance Agricultural Sustainability

 

Beijing AIForce Tech (BAIFT) has already moved beyond the pilot stage through a five-year commercial lease with PepsiCo China. Its 140-horsepower electric tractor is operating on selected potato farms within PepsiCo's agricultural supply chain, providing an alternative to conventional diesel-powered agricultural machinery. The company is also testing a larger 180-horsepower model, with testing expected to conclude by the end of 2026. The newly signed letter of intent will explore expanding the existing partnership and introducing further agricultural technologies in China.

Australia-based X-Centric Sciences has completed field trials with PepsiCo's agricultural team to assess how its soil intelligence technology could improve decisions about soil health and agricultural inputs. The companies will explore further applications in Australia. Meanwhile, Takachar, a Thailand-based programme alumnus, is developing portable technology that converts agricultural residues into biochar. Its agreement with PepsiCo will support further assessment of potential commercial applications across Asia Pacific agricultural value chains. Both technologies could contribute to more efficient resource management, although the announcement does not provide quantified improvements in yields, soil health or emissions reductions.

 

Packaging Recovery and AI Logistics Target Supply Chain Efficiency

 

In Indonesia, Bali Waste Cycle has been working with PepsiCo to recover and recycle flexible packaging waste, including used snack packaging. During the programme, the startup demonstrated potential applications for recovered materials by producing street signs installed in Denpasar and Gianyar. The companies have signed a letter of intent to explore expanding packaging recovery and developing additional circular applications for recycled flexible plastics. The work addresses a difficult part of packaging waste management, where flexible materials can be challenging to collect, sort and recycle economically.

Australian startup Adiona is pursuing opportunities to improve logistics efficiency through AI-powered route and network optimisation. Building on earlier collaboration with PepsiCo, the startup has participated in logistics simulations involving China and Thailand. Its new agreement focuses on exploring network and logistics optimisation opportunities in China. Better routing and fleet utilisation could reduce transportation costs and potentially lower fuel consumption, but the announcement does not disclose verified operational savings or emissions reductions from the technology.

 

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Commercial Readiness Becomes the Focus of PepsiCo's Accelerator

 

Unlike conventional startup accelerators focused primarily on mentoring and early-stage technology development, the 2026 IMPACT Edition involved cross-functional evaluation by PepsiCo's sustainability, procurement, research and development, finance, legal, supply chain and operations teams. The approach was designed to identify technical, financial and operational barriers that can prevent promising solutions from being adopted at commercial scale. These considerations include procurement requirements, regulatory compliance, integration with existing systems and whether technologies can deliver sufficient business value.

Anne Tse, Chief Executive Officer for Asia Pacific at PepsiCo, emphasised the importance of testing innovations against operational requirements. "The opportunity goes beyond any single technology or partnership," she said, highlighting the role of collaboration between startups, investors and established businesses in supporting innovation. The five letters of intent establish a basis for further discussions, but they do not represent binding commitments to commercial rollouts. Any additional deployment remains subject to technical evaluation, commercial negotiations and agreement between the participating companies.

The programme reflects PepsiCo's efforts to incorporate emerging sustainability technologies into its agricultural and supply chain operations under its PepsiCo Positive (pep+) strategy. Several startups have already demonstrated progress through existing commercial arrangements, field trials and material recovery activities. The next stage will determine whether these developments can translate into wider deployments with measurable environmental and operational benefits.

 

Source: PepsiCo