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Frito-Lay (PepsiCo) - Example Best Practice

Frito-Lay, a division of PepsiCo, operates the seventh largest private delivery fleet in the United States. The major reasons Frito-Lay initiated a CNG vehicle program is for improved economics, greenhouse gas reduction, and to support national and regional energy security. It began with a pilot trial in Rancho Cucamonga, California with two CNG class 8 tractors. Over 18 months, Frito-Lay expanded the testing to 2 more sites and purchased 16 additional vehicles. Forty-nine additional CNG tractors are on order and scheduled for delivery by July 2012. Frito-Lay has found that the economic benefit of CNG is very favorable on its larger delivery trucks that have 300–500 mile routes. The tank configuration being used can support that range and additional saddle tanks may be added to get up to 150 gasoline gallon equivalents for a range of 700 miles. CNG is seen as a win-win for Frito-Lay both in terms of its sustainability strategy and reducing costs. The company retires approximately 125 tractors a year and plans to replace as many of them as possible with CNG vehicles. Frito-Lay’s CNG vehicle program includes the following:

Frito-Lay compressed natural gas trucks
Figure 24. Frito-Lay compressed natural gas trucks
  • Freightliner M2 112 trucks with Cummins Westport ISL-G engines
    • 18 in use within the fleet, 49 more being added in 2012
  • Multilocation deployment
    • Pilots in Rancho Cucamonga (California), Irving (Texas), and Phoenix (Arizona)
    • Plans to expand to facilities in Indiana, Wisconsin, North Carolina, and a second site in Arizona
  • Primarily utilize existing public CNG stations for fueling
    • Established minimum criteria to identify suitable stations and are able to negotiate a strategic pricing contract due to their high usage
    • Limited public CNG stations restrict expansion to all locations
    • First corporate-owned station is under construction in Wisconsin; the station will be a private fast-filling system with 1,200 standard cubic feet per minute or a 8.7 DGE per minute throughput capacity
  • Investigation into a medium-duty CNG solution for the company’s 24-foot straight dry box trucks (23,000 gross vehicle weight rating) is underway
Frito-Lay compressed natural gas information sheets carried in each truck
Figure 25. Frito-Lay compressed natural gas
information sheets carried in each truck

Frito-Lay estimates that the payback for the extra cost of the natural gas trucks is a year and a half. Generally, the trucks have a 50% increase in capital per acquisition, but an approximate 40% cost per mile reduction. The 67 CNG trucks will save the company about 900,000 gallons of diesel fuel annually. The company now wishes it had embraced CNG sooner.

Initially there were some questions and minor apprehension from vehicle operators. However, by incorporating them into the team that piloted the technology and made the decision on implementing a CNG vehicle program, the vehicle operators ended up becoming advocates for the CNG program. The drivers now act as “ambassadors” for CNG, and they embrace the environmental benefits and enjoy the quieter operation of the CNG trucks. All CNG trucks have information sheets shown in Figure 25 for drivers to share with any interested party they encounter on their routes. Much of Frito-Lay’s success stems from its ability to develop and execute a strong change management process and having senior leadership team buy-in, alignment, and support.

Contact

Gino Porter, Eastern OTR Fleet Manager (North)
774.242.4321 - Cell
781.348.1544 - Fax
Gino.Porter@Pepsico.com

Last Updated: 07/01/2014