PepsiCo's subsidiary Frito-Lay has partnered with TerraCycle to recycle its snack packaging and convert the produce into purses and pencil cases.
All the company's snack brands packaging, including Doritos and Tostitos tortilla chips, will be used to make products such as wallets and tote bags that will be available in highstreet stores by late 2009.
Consumers and local community groups can earn money by collecting the used Packaging and passing it on to TerraCycle at an initial 1,000 collection sites.
The company intends to divert more than five million bags from landfills and engaging 150,000 people in the scheme.
In addition, the Company plans to use a fully compostable bag made from plant-based renewable material by 2010 for its SunChips brand.