Why are PepsiCo and XPO Collaborating for Electric Freight?
PepsiCo is collaborating with XPO Logistics to push a shared electric freight ambition forward, focussed on reducing transport emissions across the UK supply chain.
With more than one million kilometres of product to move annually, this logistics overhaul puts EVs to work at scale.
The deal covers PepsiCo’s key distribution centres in Leicester, Lutterworth, Coventry and Warrington, with XPO acting as the company’s principal transport partner in England and Wales.
Behind products like Pepsi MAX, Doritos and Quaker Oats, PepsiCo also produces Walkers, Wotsits and Pipers, making it a daily presence in homes across the UK.
Every day, PepsiCo’s products are transported through the supply chain to reach consumers more than a billion times.
Now, that movement is set to rely less on diesel and more on electric power.
EVs on the road, emissions off the map
The shift to EVs begins with Mercedes-Benz eActros trucks, battery-powered hauliers now joining PepsiCo’s logistics network under XPO’s management.
These vehicles are expected to cover more than a million kilometres each year, helping eliminate more than 1,200 tonnes of CO₂ from freight operations annually.
But the change goes beyond swapping engines. XPO brings digital infrastructure into the mix through its CO₂ Reporting Dashboard, a proprietary system that uses artificial intelligence, live data and scenario modelling to measure and manage emissions.
This allows PepsiCo to track its logistics impact in real time, making adjustments where needed to meet environmental targets.
“Sustainability is in our DNA," says Dan Myers, Managing Director for the UK and Ireland at XPO Logistics.
"We are proud to partner with PepsiCo on this journey, combining investment in electric mobility with advanced technology and operational excellence.
"Our shared ambition goes beyond compliance — it’s about transformation. I believe this is just the beginning of what we can achieve together.”
XPO operates across 14 countries in Europe, with 206 sites, 20,000 trucks and trailers and 1,000,000 square metres of warehouse space.
The wider group is listed on the New York Stock Exchange and handles less-than-truckload freight across North America, moving more than eight million tonnes for 55,000 customers annually.
PepsiCo Positive meets electric ambition
The project sits within PepsiCo’s “PepsiCo Positive” (pep+) strategy, a business-wide agenda focused on sustainability and human capital.
Introduced in 2021, pep+ aims to deliver long-term commercial value while staying within environmental boundaries, from agriculture to final delivery.
Working with XPO allows PepsiCo to reduce carbon emissions in transport while maintaining its UK-wide distribution reliability.
“XPO Logistics has shown itself to be the ideal partner to help advance our PepsiCo Positive ambition," says Andrew Smethurst, UK Logistics Director at PepsiCo.
"From their industry-leading sustainability credentials to a strong safety culture and transparent operational model, their team has consistently delivered innovation and value.
"This new partnership will play a vital role in further reducing our logistics emissions as we move iconic products like Walkers crisps and Doritos to our customers across the UK.”
Trucks, tech and transformation
While PepsiCo and XPO lead the rollout, Daimler Truck UK supplies the vehicles.
Its eActros 600 model is at the heart of the partnership.
“We are very proud to strengthen our partnership further with XPO Logistics with this order of our award-winning eActros 600s for the PepsiCo partnership," says Heiko Selzam, Managing Director at Daimler Truck UK.
"This commitment underscores the recognition of both companies of the critical role these vehicles will play in achieving their sustainability goals.
"Following extensive collaboration, this order firmly establishes the eActros 600 as a leading solution in the electric truck market.
"We are looking forward to seeing these trucks operational from 1 August.”
