I recently noticed a regular column that appears in the FT on Thursdays titled “The Case Study.” It presents a brief analysis of a problem facing a firm and the solution that it came up with to resolve the problem. Sometimes the problems are related to CSR, but most of the time they are not.
The case in the url below focused on Pepsi’s decision to pursue a more environmentally friendly bottle for its drinks. Thinner bottles use less plastic (reducing waste and raw materials) and lighter bottles are easier to transport (reducing carbon emissions). The case states that the project was pursued by a senior engineer within Pepsi, Rajendra Gursahaney, and was far from straightforward:
“The idea would either revolutionise the bottling industry or cost his company millions of dollars in delays.”
The difficulty arises because plastic bottles require a minimum amount of rigidity to retain their shape during the production process:
“Non-carbonated drinks are vulnerable to bacteria if they are not bottled properly. So, most companies heat beverages to a temperature that destroys micro-organisms. The hot liquid is then poured into a bottle until it is full, destroying any bacteria on its inner wall. Bottlers must use a thick plastic that will not deform, which means it is expensive, heavy and has a big environmental footprint.”
It is when the liquid cools that the potential for deformity occurs and a thinner bottle increases this risk. The proposed solution was to add nitrogen (a gas that does not harm either the product or consumer) during production. As the gas expands, Gursahaney reasoned, it would counteract the cooling of the liquid to retain the bottle’s shape:
“The difficulty was that nitrogen could not be added to a hot drink, as it would instantly vaporise and the fluid would bubble out.”
Read the article to find out how the team at Pepsi overcame the problem, gradually refining the process until quality control reached an acceptable success rate. The solution was a result of the team of six working for over a year in the laboratory. The outcome for Pepsi and the environment was significant:
“A traditional 1.5 litre bottle weighs 63g; Guru's bottle weighed only 48g. Pepsi forecasts $7.5m in annual plastics savings in Russia alone.”
Importantly, to ensure the broadest application of this technology and secure the greatest environmental benefit:
“Pepsi has chosen not to patent this idea, but instead is willing to share the technology with other companies.”
Take care
David
The case study: Creating a lighter plastic bottle; Pepsi Beverages Company
Elton, Chester Gostick, Adrian
795 words
4 November 2010
Financial Times
USA Ed1
12
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