PepsiCo South Africa has made a significant ZAR 746 million (USD 40 million) investment to expand its Isando factory in Johannesburg with a state-of-the-art potato chip production line. The expansion aims to meet the increasing demand for snack foods across Southern Africa while boosting efficiency and sustainability across the supply chain.
Addressing Growing Market Demand The global snack food market continues to rise, with potato chips being a leading segment. In South Africa, potato chips are an essential part of PepsiCo’s snack portfolio. Currently, the company operates four production lines across plants in Parow, Durban, and Isando, running at maximum capacity. The new line at Isando is a critical investment to increase output, improve production efficiency, and meet both local and export market demands.
Riaan Heyl, CEO of PepsiCo South Africa, highlighted: “Expanding our potato chip production capacity is 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.”
Local Economic Growth and Job Creation
The expansion project directly creates 100 new jobs in the Johannesburg area, providing employment opportunities for skilled and semi-skilled workers. Additionally, PepsiCo has engaged local suppliers and contractors for the installation of the production line, further supporting South Africa’s small to medium enterprises (SMEs) and enhancing indirect employment.
With this investment, PepsiCo demonstrates a commitment to strengthening the agricultural and industrial economy by building a more robust and localized supply chain.
Sustainable Operations: Reducing Emissions and Waste
A standout benefit of the Isando factory’s location is its proximity to key potato-growing regions, reducing transportation costs and environmental impact. Previously, cross-country shipments of potato chips from Parow and Durban operations required over 2,300 annual trips—a distance of 2.2 million kilometers. By centralizing production, PepsiCo significantly cuts greenhouse gas emissions and fuel consumption, aligning with global sustainability targets.
Moreover, PepsiCo has invested ZAR 100 million (USD 5.3 million) in an innovative anaerobic digester plant at the Isando site. This plant transforms organic waste, including reject potatoes, peels, and production remnants, into biogas—a clean, renewable energy source. The biogas fuels a gas-powered engine, generating up to 780kW of electricity, meeting approximately 30% of the factory’s peak energy demands.
Riaan Heyl stated: “These combined investments drive efficiency while championing sustainability in support of our PepsiCo Positive strategy, which transforms how we operate across production, marketing, and distribution.”
