PacLease Delivers PepsiCo's Tropicana Division Fuel Savings with Hybrid Trucks

CHICAGO, May 3, 2010 – Tropicana, a division of PepsiCo (NYSE: PEP), is taking steps to upgrade its chilled delivery fleet operation to “greener” models starting with two new hybrid diesel-electric medium-duty Peterbilt trucks, which service downtown Chicago. This past April, Tropicana placed into service the two trucks under a full-service lease through PACCAR Leasing (PacLease).

“PacLease is extremely pleased to partner with PepsiCo’s Tropicana division on this state-of-the-art transportation equipment,” said Olen Hunter, PacLease director of sales and marketing. “By working closely with PepsiCo, Peterbilt and Kidron Body Company, we developed a transportation solution, centered around Peterbilt’s new class 7 Model 337 hybrid diesel-electric straight truck platform. The hybrid diesel-electric truck is expected to reduce fuel consumption by 35 percent and reduce greenhouse gas emissions by an equal amount.”

The hybrid trucks are equipped with a unique refrigeration system called Ultra Temp, manufactured by Kidron. The system allows Tropicana to eliminate emissions and fuel consumption associated with the refrigeration engine, through the use of a hybrid refrigeration system. The system draws power from the truck’s powertrain and stores it. Using that stored energy, it maintains ambient temperature in the cargo area within set specifications throughout the delivery route.

“The combination of the Peterbilt hybrid truck and the Kidron body with hybrid reefer technology will be one of the most fuel- and emissions-conscious delivery vehicles on the road,” Hunter said.

Tropicana’s direct store delivery unit operates trucks at 22 locations, including Chicago, Denver, Los Angeles, Miami, Phoenix, San Francisco and Seattle. Over the next few years, the PepsiCo unit will continue to replace its older trucks with the more fuel-efficient, environmentally preferable trucks.

Acquisition of the hybrid trucks comes on the heels of the company’s move to replace 72 older delivery trucks with Peterbilt medium-duty models also placed into service under a full-service lease through PacLease. The standard diesel-powered Peterbilts, each equipped with 260-hp PACCAR PX-8 engines, and Allison 3000 5-speed transmissions, are getting 6.75 mpg on average, a 35 percent improvement over the trucks they replaced.

“With the new hybrids, we’re very optimistic about getting an additional 35 percent improvement in fuel economy over that of our standard diesel-powered Peterbilts,” said Bill Davis, national fleet manager for Tropicana. “Based on numbers we’ve gotten from Peterbilt and PacLease and on the experience of other companies that have adopted similarly equipped hybrid trucks, we expect to get 10-plus miles per gallon. That has a lot of potential for Tropicana and PepsiCo.

“First-in-class offerings from Peterbilt provide our drivers comfort, quality workmanship, and reliability,” added Davis. “Furthermore, the combination of replacing the 72 older trucks and introducing the two new hybrids to our fleet are helping lead to better fuel economy and lower carbon emissions. The higher fuel economy and lower carbon emissions will help Tropicana reduce the transportation carbon footprint for the Chicago fleet.”

PacLease national account sales executive Ron Festervan said the replacement of the 72 older delivery trucks and the acquisition of the hybrid trucks has resulted in the Tropicana division reducing particulate matter emissions by an estimated 16 tons per year and nitrogen oxide emissions by 373 tons per year.

“This accomplishment is in direct alignment with parent company PepsiCo’s sustainability initiative, for which it should be commended,” Festervan said.

Tropicana’s leased hybrid trucks are equipped with 300-hp PACCAR PX-6 engines providing 660 ft-lbs of torque powered through Eaton 6-speed hybrid transmissions. The truck’s Eaton diesel-electric hybrid power system integrates a transmission-mounted 60-hp electric engine, which can start moving the unit without using the diesel engine. The electric engine assists the diesel engine when the unit needs more torque and power for acceleration. The engine works with a frame-mounted, 340-volt lithium-ion battery pack that recharges every time the unit brakes to reduce speed.

The hybrid system is monitored through an in-dash display. As the power requirements for different driving conditions change, the screen constantly updates the driver on system status.

Festervan said companies like PepsiCo benefit from the flexibility that PacLease offers with its full-service leasing, which includes PacLease’s 24-hour call center and full-service maintenance of the company’s new trucks.

“PacLease allows companies to acquire the latest truck technology designed to save fuel, reduce emissions and enhance driver productivity without expending capital or tying up credit lines in a challenging economic environment,” Festervan added.

About PacLease and PACCAR

PACCAR Leasing Company (PacLease) is one of the fastest-growing commercial truck leasing companies in the transportation industry. PacLease has independent and company-owned full-service leasing locations throughout the United States, Canada, Mexico and Germany. PacLease provides customized full-service lease, rental and contract maintenance programs designed to meet the specific needs of customers. A combination of reliable, custom-built trucks and complete service offerings allows customers to maximize the value of their transportation resources.

PACCAR Leasing is a part of the financial services group of PACCAR Inc, a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR.

About PepsiCo

PepsiCo offers the world’s largest portfolio of billion-dollar food and beverage brands, including 19 different product lines that each generates more than $1 billion in annual retail sales. Its main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - also make hundreds of other nourishing, tasty foods and drinks that bring joy to consumers in more than 200 countries. With annualized revenues of nearly $60 billion, PepsiCo’s people are united by a unique commitment to sustainable growth, called Performance with Purpose.

By dedicating itself to offering a broad array of choices for healthy, convenient and fun nourishment, reducing its environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to its communities worldwide. In recognition of its continued sustainability efforts, PepsiCo was named for the third time to the Dow Jones Sustainability World Index (DJSI World) and for the fourth time to the Dow Jones Sustainability North America Index (DJSI North America) in 2009. For more information, please visit PepsiCo’s webpage.