PepsiCo has announced plans to invest approximately $4 billion over 2019-2020 to significantly expand its operations in Mexico, its second largest market worldwide.
In a statement, the company claimed that the investment plan would include the construction of a new production plant in Guanajuato, and will aim to improve the company’s agricultural model, infrastructure, sustainability initiatives and community development programmes in the country.
According to PepsiCo, the implementation of the investment programme showcases its commitment to the country and the plan will create an estimated 3,000 jobs.
Just over $1 billion will be invested to build the new plant in Guanajuato, PepsiCo’s first new plant in Mexico in 20 years, and the new facility should become fully operational by the end of 2025.
PepsiCo will also collaborate with its regional partner Grupo Gepp to improve agricultural practices in the country, with around $1 billion of the total fund being used to improve sourcing of local raw materials 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.
To strengthen its sustainability agenda in the country, PepsiCo will increase its use of renewable energy in its operations and aim to further reduce CO2 emissions. The company will also continue efforts to redevelop its product portfolio to include increasingly healthy choices, and will dedicate $13 million to find new ways to further reduce saturated fat in its products.
Around $7 million will also be invested in community development schemes, which aim to improve water, recycling, nutrition and aid the empowerment of women in the country.
Ramón Laguarta, chairman of the board and CEO of PepsiCo said: “We are proud of our more than 110 years of history in Mexico and we are excited for the next 100.
“Mexico is our largest operation in Latin America and our second largest worldwide. 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. ”
Roberto Martinez, president of PepsiCo Foods Mexico, added: “Mexico’s competitiveness is key to the success of PepsiCo, and our goal is to make sure that our success is also that of Mexico
© FoodBev Media Ltd 2019