PepsiCo, Unilever, and other Major Retail, Food, and Beverage Companies Launch "STEP up for Agriculture" Initiative

Rhea-AI Summary

PepsiCo (NASDAQ: PEP) and Unilever have launched the STEP up for Agriculture initiative, a groundbreaking collaboration to scale regenerative agriculture through locally-tailored support systems. The program aims to strengthen farmer-facing organizations by providing tools, training, and funding to accelerate sustainable practices adoption.

The initiative supports PepsiCo's goal to transition 10 million acres to regenerative agriculture by 2030. The program is expanding globally, starting with a pilot in Spain, and brings together corporations, nonprofits, and farmer-led groups. Key partners include South East Research Farm (SERF), Practical Farmers of Iowa, and Farm Advisor, with support from The Platform for Agriculture and Climate Transformation (PACT) and the PepsiCo Foundation.

Positive

• Initiative supports PepsiCo's ambitious goal to transition 10 million acres to regenerative agriculture by 2030
• Global expansion already underway with pilot program in Spain
• Strategic partnership with multiple major corporations and organizations increases likelihood of success
• Program strengthens local farming organizations and provides new revenue streams

Negative

• Implementation and coordination challenges across multiple stakeholders and geographies
• Long-term timeline for measurable results and impact
• Success heavily dependent on farmer adoption and participation

Insights

Sustainability Investment Analyst

PepsiCo's STEP initiative strengthens supply chain resilience while advancing environmental goals, creating long-term business value beyond typical ESG initiatives.

This cross-industry initiative represents a strategic evolution in PepsiCo's sustainability approach, moving beyond typical corporate environmental pledges to address systemic agricultural challenges. The STEP up for Agriculture program tackles a critical implementation gap in regenerative agriculture: the need for trusted, local support systems that can drive farmer adoption at scale.

What makes this initiative particularly significant is its focus on strengthening the ecosystem around farmers rather than simply setting targets. By providing tools, training, and funding to farmer-facing organizations, PepsiCo is addressing the real-world barriers to adoption that have historically limited the impact of corporate sustainability programs. This approach creates a multiplier effect, as these strengthened organizations can support many more farmers than PepsiCo could reach directly.

From a business perspective, this initiative supports PepsiCo's agricultural resilience in several ways. The company sources approximately 50 key crops from more than 60 countries, making its supply chain particularly vulnerable to climate disruptions. Regenerative agriculture practices improve soil health and biodiversity, which can enhance crop yields and reduce volatility during extreme weather events. This creates a clear business case beyond the environmental benefits.

The global expansion, beginning with pilots in Spain and previous engagement in Türkiye, demonstrates PepsiCo's commitment to scaling this approach across its global supply chain. The pre-competitive nature of the collaboration with Unilever and other major companies is also noteworthy, as it creates the potential for industry-wide transformation rather than isolated progress.

While tangible financial returns will take time to materialize, this initiative positions PepsiCo to better manage long-term supply chain risks, potentially reduce input costs through improved soil health, and strengthen relationships with agricultural communities essential to its business. The program aligns with growing investor focus on substantive ESG initiatives that create tangible business value rather than superficial commitments.

• PepsiCo, Unilever, and other major retail and food and beverage companies launch STEP up for Agriculture, a first-of-its-kind collaboration to scale regenerative agriculture through locally tailored support systems.
• STEP up for Ag strengthens farmer-facing organizations by providing tools, training, and funding to accelerate adoption of sustainable practices and build resilient supply chains.
• The initiative supports PepsiCo's goal to transition 10 million acres by 2030, by strengthening farmer support organizations and advisory ecosystems needed to deliver this transformation. Expansion is already underway in Europe, beginning with a pilot in Spain—marking a global push toward regenerative agriculture
• System change requires collective action—this initiative brings together companies, nonprofits, and farmer-led groups to drive meaningful, scalable transformation in agriculture.

PURCHASE, N.Y., Sept. 18, 2025 /PRNewswire/ -- Today, leading retail and global food and beverage companies including PepsiCo (NASDAQ: PEP) and Unilever announce the launch of Supporting Trusted Engagement and Partnership (STEP) up for Agriculture (STEP up for Ag), a pre-competitive initiative designed to strengthen the capacity and sustainability of farmer-facing support organizations across North America.  

"PepsiCo is rooted in agriculture, and farmers are at the heart of our food systems. STEP up for Ag is about investing in the organizations that support farmers every day, aiming to ensure they can grow, innovate and lead the transition to more sustainable agriculture," Chief Sustainability Officer, Jim Andrews said. "When farmers thrive, we all thrive."

Empowering Farmer Support Organizations

Regenerative agriculture can be a powerful tool to promote healthier soil, as well as to reduce agricultural emissions, enhance biodiversity and watershed health, and help raise the standard of living for farmers and farming communities. It's why PepsiCo— which sources approximately 50 key agricultural crops and ingredients from more than 60 countries around the world— has a goal to drive the adoption of regenerative agriculture, restorative, or protective practices across 10 million acres by 2030.

Scaling regenerative agriculture requires more than just technical solutions—it depends on trusted relationships and local expertise. Farmers are more likely to adopt new practices when they see clear benefits and receive guidance from organizations they know and trust. That's why farmer-led, farmer-facing support groups are critical to the success of corporate regenerative agriculture programs.

"The PepsiCo program has given me the flexibility to try a lot of the regenerative practices I have wanted to implement, and across more acres. When we decided to do this regenerative agriculture thing, we wanted to be playing the long game. Something that will benefit our soil, that will benefit me if I am farming in my fifties and sixties. Or my kids if they are farming after me," Chris Beaudry, 4th Generation farmer in St. Front, Saskatchewan and South East Research Farm member, said. "When you, as a farmer, start looking at your soil having an interdependent relationship with you, then you can start making decisions that benefit you, benefit the crop and benefit us as humans as well."

STEP Up for Agriculture seeks to strengthen these local organizations by equipping them with tools, training, and resources needed to support farmers on the ground. This approach is designed to unlock scale by meeting farmers where they are, with the aim of accelerating adoption across diverse geographies and creating a ripple effect of trust and innovation throughout the supply chain.

"Regenerative agriculture is a big part of how we're building a stronger, more resilient supply chain and food system – and Unilever is committed to rolling out regenerative agriculture principles across 1 million hectares globally by 2030," said Kristina Friedman, Head of Sustainability for Unilever North America. "STEP up for Ag can help us move faster and smarter, empowering farmer-led groups with the tools they need and opening doors to more great suppliers to grow our business. Our longstanding work with Practical Farmers of Iowa has been game-changing, and this next chapter is a huge step forward."

Through STEP up for Ag, corporate and philanthropic partners will provide funding and strategic support to help farmer support organizations:

• Develop robust business and strategic plans to boost profitability and local economies
• Expand staffing and training to better equip farmers with the tools of the future
• Establish measurement, reporting and verification (MRV) systems to track sustainable progress against goals
• Enhance implementation capabilities to support scalability
• Access new revenue streams and partnerships to grow support for farmers over time

"Farmers learning about new conservation practices requires an ecosystem of learning. First, each of us must understand 'why' it's important. Second is learning --- available information is now so easy to obtain. But the essential third and most valuable part of our ecosystem is the ability to have a real farmer, an experienced mentor, stand side by side and help," Jim Moseley, U.S. Department of Agriculture Deputy Secretary (2001-2005), farmer and board member of FarmAdvisor said. "Investing in and supporting these relationships is important because those who have already adopted new conservation practices understand the consequences for the future of our productive US soils, our water quality, and a diverse biological community if we don't."

A Multi-Tiered Partnership Model

 Transitioning more farms to regenerative agriculture requires deep collaboration—no single company or organization can do it alone. By working together across sectors, STEP up for Ag is building a shared ecosystem of support that empowers farmers and drives lasting change at scale.

• Lead Partners: PepsiCo, Unilever and others—each committing to fund and collaborate with specific farmer support organizations to strengthen advisory capacity and accelerate regenerative agriculture adoption—enhancing supply resilience and supporting local farming communities.
• Contributing Partners: Corporations supporting existing or emerging organizations or the initiative at large.
• Philanthropic Partners: Including The Platform for Agriculture and Climate Transformation (PACT) and the PepsiCo Foundation, providing catalytic funding and strategic insight.
• Farmer Facing Support Partners: Phase I will include South East Research Farm (SERF), supporting farmers throughout the Canadian Prairies, and Practical Farmers of Iowa, supporting farmers across western Canada and the US, and Farm Advisor, a farmer-led, Indiana-based initiative that pairs experienced conservation farmers with peers to accelerate the adoption of soil health practices through mentorship, education, and on-farm support.

"From the beginning, Practical Farmers of Iowa has aimed to cut through the noise with clear, science-based information and a farmer-to-farmer network grounded in trust. Over a decade ago, we saw that farmers were ready to adopt practices like cover cropping—and we needed to scale up to support them. Having all these major names invest in our capacity came at a pivotal moment," Sarah Carlson, Senior Programs and Member Engagement Director, Practical Farmers of Iowa, said.  "It enabled us to become more efficient, expand our reach, and deliver timely technical and financial support to more farmers."

Looking Ahead

Over the next two years, STEP up for Ag will aim to facilitate peer learning, host annual in-person workshops and develop shared tools and resources to scale impact.

Looking ahead, STEP up for Ag is launching its first European pilot with the farmer-led cooperative Garlan in Spain. Over the next year, Garlan—supported by the Earthworm Foundation—will design its own regenerative agriculture program to offer to farmers, improving access to high-quality guidance and advice on regenerative practices. This pilot builds on earlier engagement in Türkiye, where EIT Food hosted a regional workshop that brought together farmer support organizations, corporate partners, and NGOs to explore how STEP Up for Ag could take shape locally. Together, these efforts mark the start of a broader push to strengthen advisory ecosystems and scale regenerative agriculture across Europe and other global landscapes.

"At Earthworm, we believe farmers are at the heart of the transition to regenerative agriculture. This pilot in Spain is about empowering Garlan with the tools and methodologies need to succeed in supporting their farmers in the transitions. The key being a facilitation for all their key clients to support a collective approach around the crop rotation, at the whole farm level, while mobilizing other actors in the landscape who have an interest in seeing this transition succeed," CEO of Earthworm Foundation Bastien Sachet said. "By working hand in hand with PepsiCo and receiving the support from StepUp for Ag, we can co-design a strong ecosystem around farmers that makes regenerative practices practical, profitable, and scalable."

Through this partnership—and with the potential future involvement of additional major organizations—this growing network aims to help drive meaningful, long-term progress toward a more sustainable agricultural future.

About PepsiCo  
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $92 billion in net revenue in 2024, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and drinks, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that places sustainability at the center of our business strategy, seeking to drive growth and build a stronger, more resilient future for PepsiCo and the communities where we operate. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

About Unilever in North America 

Unilever is one of the world's leading suppliers of Beauty & Wellbeing, Personal Care, Home Care, Foods and Ice Cream products, with sales in over 190 countries and products used by 3.4 billion people every day. We have 128,000 employees and generated sales of €60.8 billion in 2024.  Our leading brands in North America include Dove, Hellmann's, Vaseline, Degree, Axe, TRESemmé, Knorr, Magnum, Ben & Jerry's, Nutrafol, Liquid I.V., Paula's Choice, and Dermalogica.  For more information on Unilever U.S. and its brands visit: www.unileverusa.com

For more information on Unilever Canada and its brands visit: www.unilever.ca

Contact: pepsicomediarelations@pepsico.com 

 

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SOURCE PepsiCo, Inc.

FAQ

What is PepsiCo's STEP up for Agriculture initiative?

STEP up for Agriculture (STEP up for Ag) is a collaboration between PepsiCo, Unilever, and other major companies to scale regenerative agriculture by providing tools, training, and funding to farmer support organizations.

What is PepsiCo's regenerative agriculture goal for 2030?

PepsiCo aims to drive the adoption of regenerative agriculture practices across 10 million acres by 2030, supporting sustainable farming practices and resilient supply chains.

How will STEP up for Agriculture help farmers?

The initiative will help farmers by strengthening local support organizations, providing tools and training, developing business plans, expanding staffing, and establishing measurement systems to track sustainable progress.

Where is PepsiCo's STEP up for Agriculture program expanding?

The program is expanding globally, with its first European pilot launching in Spain through the farmer-led cooperative Garlan, supported by the Earthworm Foundation.

Which organizations are partnering with PepsiCo in STEP up for Agriculture?

Key partners include Unilever, South East Research Farm (SERF), Practical Farmers of Iowa, Farm Advisor, The Platform for Agriculture and Climate Transformation (PACT), and the PepsiCo Foundation.