Updated

PepsiCo Inc. on Tuesday unveiled a bottle made entirely of plant material, which it says bests the technology of competitor Coca-Cola and reduces its potential carbon footprint.

The bottle is made from switch grass, pine bark, corn husks and other materials. Ultimately, Pepsi plans to also use orange peels, oat hulls, potato scraps and other leftovers from its food business.

The new bottle looks, feels and protects the drink inside exactly the same as its current bottles, said Rocco Papalia, senior vice president of advanced research at PepsiCo. "It's indistinguishable."

PepsiCo says it is the world's first bottle of a common type of plastic called PET made entirely of plant-based materials. Coca-Cola Co. currently produces a bottle using 30 percent plant-based materials and recently estimated it would be several years before it has a 100 percent plant bottle that's commercially viable.

"We've cracked the code," said Papalia.

The discovery potentially changes the industry standard for plastic packaging. Traditional plastic, called PET, is used in beverage bottles, food pouches, coatings and other common products.

The plastic is the go-to because it's lightweight and shatter-resistant, its safety is well-researched and it doesn't affect flavors. It is not biodegradable or compostable. But it is fully recyclable, a characteristic both companies maintain in their new creations.

Traditional PET plastic is made using fossil fuels, like petroleum, a limited resource that's rising in price. By using plant material instead, companies reduce their environmental impact. Pepsi says the new plastic will cost about the same as traditional plastic.

PepsiCo plans to test the product in 2012 in a few hundred thousand bottles. Once the company is sure it can successfully produce the bottle at that scale, it will begin converting all its products over.