Frito-Lay is a division of PepsiCo and manufactures many food products including the Lays, Fritos, and Doritos Brands. PepsiCo divisions include Pepsi-Cola, Quaker Foods, Gatorade and Tropicana. Frito-Lay has been an ENERGY STAR partner since 2003, and is headquartered in Plano, TX. Frito-Lay operates 33 manufacturing facilities in the U.S. and owns the 6th largest truck fleet in the U.S.
Industrial Partner Since 1998
Awards & Recognition
7701 Legacy Drive
Plano, TX 75024-4099
Setting targets to ensure goals are met
Corporate energy goals can only be met if each facility does their part to meet the goal, but many companies struggle to set facility-level goals. In Frito-Lay's energy program, each facility must create its own action plan, called a "playbook." Playbooks must be designed to deliver 150% of the facility's energy target, thereby accounting for potential delays or projects that do not deliver sufficient energy savings. Playbooks are further refined with support from regional energy captains and Frito-Lay's energy department. Each item in the playbook states the project's potential for savings, financial value, project leader, completion period, as well as necessary support or funding. An audit of each action item is conducted upon its implementation to verify the delivery of estimated conservation and savings. When projects require capital investments the energy director works with the facility and corporate financing departments to ensure adequate funding. This management tactic keeps Frito-Lay on track to meet their long-term goal of reducing fuel use by 30% and improving electricity efficiency by 25%.
While many energy projects guarantee substantial, long-term savings, their payback potential is usually assessed using timelines that are more appropriate for other types of investments. As a result, energy projects often do not get the funding that they need to get off the ground. Frito-Lay's energy manager works closely with senior financial management as part of the company's energy policy and has been able to demonstrate that most energy projects have less risk and higher success rates than other types of projects. As a result, senior management has lowered the hurdle rates for energy projects and increased the acceptable simple payback for energy projects.
Congratulating Successful Energy Managers
Frito-Lay has found that applauding their site energy champion's efforts reinforces the importance of energy management within their large organization including 37 manufacturing plants. Frito-Lay uses its annual energy summit, attended by over 300 employees, as the setting for a National Recognition Dinner. The energy champions of the highest performing plants are invited to this event, dine with senior executives, and are recognized for their contributions towards Frito-Lay's energy goals. Providing this kind of recognition for plant energy managers demonstrates to all employees that their involvement in energy management is highly valued, and crucial in maintaining Frito-Lay's energy performance improvements, which have reduced greenhouse gas emissions every year by over 200,000 metric tons of carbon equivalent compared with emission levels in 1999. These reductions offset emissions equivalent to 140,000 cars.