PepsiCo and Chickpeas: a Private-Public Partnership in Ethiopia

Photo Credit: Judith Schuler, WFP

Around the globe, PepsiCo is known for signature food and beverage brands such as Frito-Lay, Gatorade, and Pepsi Cola. But in Ethiopia, PepsiCo plans to expand its brand, boost profits, and fight malnutrition with a lesser known product: the chickpea.

In September of last year, PepsiCo, the U.S. Agency for International Aid (USAID), and the UN World Food Program (WFP) announced a private-public partnership named Enterprise EthioPEA. This joint venture seeks to increase production of chickpeas in Ethiopia, support the development of the Ethiopian economy, and manufacture a ready-to-use supplementary food (RUSF) that will help combat malnutrition in Africa.

Currently Ethiopia is the top chickpea producer in Africa. PepsiCo and USAID plan to work with 10,000 small farmers in Ethiopia to double their chickpea production through better irrigation, soil enhancement, and improved farming techniques. Additionally PepsiCo scientists are working to increase yields by engineering a chickpea seed that is particularly suited for agriculture in Ethiopia.

Chickpeas are nitrogen-fixing, absorbing nitrogen from the air instead of the soil. Increasing chickpea production could benefit the land and better support the production of other crops in Ethiopia. Chickpeas are also 22 percent protein. When compared to the conversion rate of feed-to-protein in livestock, the direct consumption of protein and nutrients from chickpeas make them a more sustainable alternative to meat.

PepsiCo uses chickpeas to manufacture a variety of health foods and specifically partners with Israel’s Strauss Group to produce Sabra Hummus. Increasing chickpea production in Ethiopia is part of a business plan to increase revenue from nutritious products to $30 billion by 2020. At the same time, they plan to develop a value-added supply chain within Ethiopia to support the nation’s ability to further develop its manufacturing sector and export new commodities.

PepsiCo and WFP will work together to transform some of the chickpeas into a nutrient-rich RUSF, locally produced in Ethiopia. They plan to use WFP’s distribution network to deliver the RUSF to 40,000 Ethiopian children between the ages of 6 and 23 months. Later, they hope to expand delivery throughout the Horn of Africa.

“This initiative will positively impact the livelihood of local farmers, address the critical issue of famine in the Horn of Africa and create sustainable business opportunities for PepsiCo," said Indra Nooyi, Chairman and CEO of PepsiCo. Nancy Roman, WFP's director for private partnerships, noted, “What's different about this is that the need on the humanitarian side is dovetailing so perfectly with the business plan on the corporate side."

USAID Administrator Dr. Rajiv Shah underscored the potential for such partnerships, "This unique partnership illustrates how we can develop market-based solutions and leverage resources to make a sustainable impact in reducing hunger and poverty.”

While the sustainability efforts of PepsiCo are applause-worthy, critics warn consumers not to ignore the greater impact of the company. In a world where 43 million children under five and 1.5 billion adults over 20 are overweight, PepsiCo still peddles foods and beverages that are salty, sugary, and processed. RUSFs are nutritious and Cheetos are not. PepsiCo makes both.