PepsiCo is testing recyclable rings made from molded pulp on its soda cans. The molded pulp rings and secondary paperboard packaging will be tested in California on PepsiCo's 7.5-ounce six-packs of Pepsi and Sierra Mist. The pulp rings are compostable and biodegradable. This is a part of PepsiCo's plan to make all packaging recyclable, compostable or biodegradable by 2025. Furthermore, PepsiCo plans to reduce 35% of virgin plastic in its beverage packaging by 2025. This could eliminate more than 8,000 metric tons of new plastic and about 11,000 metric tons of greenhouse gas emissions. 

PepsiCo's sustainability plan appears to be, at least in part, due to consumer demands. Consumers are becoming more eco-conscious and are making their purchasing decisions based on the environmental impact of a company's product. Also, PepsiCo may be acting in response to legislation as California has passed laws mandating policy changes to reduce the amount of waste being sent to landfills. 

PepsiCo's solutions will still be influenced by cost but continuous pressure by both consumers and regulations should force Pepsi to adapt, even if that means working with other major companies to find an innovative solution.