Packaging
We believe we have an opportunity to provide environmentally preferable packaging to our consumers around the globe and reduce our impact on the environment. Our ability to serve food safely, quickly and conveniently is largely dependent upon our use of disposable packaging. In addition, the delivery of food and restaurant products to 
our restaurants is predicated by the packaging our supply partners deem is safe and convenient.
Throughout the quick service restaurant industry, the way in which we package food has been consistent with the standardized packaging available in the industry. Understanding and addressing our packaging impact on the environment in a relevant manner for our business is a global imperative for the long-term sustainability of our business.
We have established a global packaging vision for all our business:
We recognize that packaging requirements by product, brand and market vary based on food safety and product integrity requirements, legislation and ease of use for the customer.
We believe the packaging used to provide our customers with safe, delicious food and the packaging our suppliers provide to our restaurants for the goods and services required to run our operations should have the least impact on the environment as possible while at the same time maintaining the superior quality our customers expect.
We will work to eliminate unnecessary packaging related to our restaurants at the customer and supply chain level, ensuring we use and provide to customers only what is needed.
We will strive to reduce the amount of packaging in our restaurants and from our suppliers; reuse packaging and ensure our customers have options to reuse the packaging we provide whenever possible; recycle our packaging and work with legislators to ensure the infrastructure is in place for our packaging to be included in the recycling stream; and work with our supply partners to provide packaging that is made from renewable resources.
Our brands will set measurable goals for environmental impact packaging changes that are relevant for their restaurants and teams and ensure shareholder and supply chain responsibility by achieving these goals at cost parity or a cost savings.
We will educate consumers and stakeholders about our approach to environmental sustainability and corporate social responsibility related to our packaging.
Here are some samples of what our brands are doing across the globe to help us achieve this vision:
Our U.S. brands use napkins made from 100 percent recycled content and have molded fiber drink cup carriers that are 100 percent recycled content.
Since our last report in 2008, Taco Bell has removed more than 710,000 pounds of high density polyethylene from our carry out bags, more than 640,000 pounds of petroleum based resin from our clear cups, 617,000 pounds of polystyrene from our Taco Salad containers and 51,000 pounds of corrugated board in containers. These efforts not only reduce waste, but also help reduce fuel consumption used by trucks during transportation. They have also been working closely with their partners to reduce waste. Pepsi is converting 100 percent of drink dispensers and ice makers to an eco-friendly foam insulation. And through collaborative packaging and product engineering efforts, they have eliminated nearly a half million syrup bags from being produced.
Pizza Hut U.S. has made several improvements in packaging over the past few years. They have reduced the amount of paper fiber used in its pizza boxes by 15% in the last decade (5% in the last 3 years). In addition, they utilize up to 50% recycled material in its pizza boxes and corrugated packaging, have switched from white to kraft (brown) outside printed liner on our pizza boxes and have reduced the overall ink usage on boxes by over 300%.
They have also been able to reduce the material used to produce the Pizza Hut kid's cup by almost 30% in the last year. In September 2010, KFC restaurants in the U.S. introduced a reusable food side container which was recently honored as a winner in the 2010 Greener Package Awards. Click here to watch a video highlighting the new container. The container was introduced in five markets beginning in May 2010 with plans to be available nationally at KFC restaurants by early 2011. The introduction of the container is just one element of a larger packaging initiative. Paper serving boxes are also replacing plastic plates as part of KFC's plan to reduce its use of nonrenewable resources and to eventually eliminate foam packaging from its restaurants. By the end of 2010, KFC U.S. will reduce foam packaging use by 62 percent and reduce total plastic use by 17 percent. To learn more visit www.kfc.com/packaging.
In Australia, KFC has been working on a Closed Loop recycling project for the past three years.
This program has attracted never before seen government funding and is a world leading QSR recycling initiative. No other QSR in Australia (nor have we found elsewhere in world) is doing anything on this scale and impact. KFC has been awarded $400K from the Australian Packaging Covenant and state governments to go toward the infrastructure of the new "Split Bin" to support this initiative. Also in this market, 100 percent of all pizza boxes and 80 percent of KFC boxes come from recycled fiberboard. Since 2009, KFC Australia has diverted 1,858 tons from landfills, the equivalent volume of stacking nearly 1 Million KFC meal boxes on top of each other. That stack would be over 9 times the height of Mt Everest! By the end of 2011 the KFC Closed Loop recycling program aims to divert over 5,000 tons of waste from landfills. That includes enough recycled plastic material to be able to produce over half a million (623,140) NEW KFC Krusher cups! By including recycled plastic in the Krusher cup, KFC will prevent over 429 tons of CO2 being released into the atmosphere this year. The amount of CO2 saved will be the same weight as 52 elephants floating in our atmosphere or the equivalent of taking 72 cars off the road forever.In the U.K., KFC has switched its Fillet and Zinger burgers from cardboard "clamshells" to paper wrappers, and has moved its classic chicken meals, the Colonel's Meal and Variety Meal, from cardboard boxes to paper bags. In February 2009, foil wrappers for Mini Fillet Burgers also changed to paper wrappers. The new packaging is made from 100% renewable sources from sustainably farmed European forests, and is 100% recyclable, biodegradable and made in the U.K. These changes are on the back of an initial step to reduce cardboard waste in 2008, when the business stopped packing 'Boxed Meals' in boxes for eat-in customers, saving approximately 554 tons in waste packaging.
Since January 2008, KFC France has significantly reduced product packaging waste for sandwiches, fries and individually sold chicken pieces, by progressively changing its packaging from carton to paper. The paper packaging contains 40% of recycled fibres. KFC France also uses 50% of recycled paper in all communication materials.
In China, we have been focusing on reducing weight and volume of packaging items. Napkins have been reduced from 275mm to 230mm and the printing and embossing have been removed. We have also reduced the kid's meal bag, the clamshell "burger" box from 270gsm to 250gsm, the tray liner from 70gsm to 60gsm, and the pizza box from 200/150/180gsm to 140/125/125gsm.
We are working to minimize the impact of manufacturing our packaging while maximizing its recyclability and reusability. We will continue to work within packaging content regulations to ensure customer and food safety, and to retain functionality. Though limited availability of suitable recycled fiber restricts our access to the supply of these materials in some geographical areas, we will work to innovate sustainable practices into all of our wrappers, napkins, and containers worldwide.
