PepsiCo is planning to invest approximately $4 billion in Mexico over the next two years. The beverage giant’s plans include a new production plant at Guanajuato and improvements in its agricultural model, infrastructure, sustainability initiatives and community development programmes in the country.
The investment, which is expected to take place during 2019-2020, will create around 3,000 jobs. The planned production plant at Guanajuato is PepsiCo’s first new facility in Mexico for 20 years. It is set to be operational in 2025 at a cost of just over $1bn.
The improvement of PepsiCo’s agricultural practices in Mexico form part of the company’s collaboration with its regional partner, Grupo Gepp. Approximately $1bn will be used to improve the sourcing of local raw materials for its snack range, such as potatoes, corn, and sugar, as well as the renovation of its Agricultural Development Center to ensure the supply of high-quality potato seeds.
PepsiCo hopes that an increased use of renewable energy in Mexico will reduce carbon dioxide emissions and strengthen its sustainability agenda in the country. Meanwhile, the company will continue in its efforts to offer consumers more healthy choices – including a $13 million investment towards finding new ways to further reduce saturated fat in its products.
“Mexico is our largest operation in Latin America and our second largest worldwide,” said Ramon Laguarta, chief executive of PepsiCo. “It is an honour for us to have a positive impact at all levels of the country’s economy, from the countryside to the corner stores in each location.”