PepsiCo to Invest USD4bn in Mexico Until 2020
PepsiCo is looking to invest approximately USD4bn over 2019-2020, to expand operations in Mexico, one of its largest markets worldwide. Approximately USD1bn will be used to improve the sourcing of local raw materials for its snack range, such as potatoes, corn and more, as well as the renovation of its Agricultural Development Center, to ensure the supply of high-quality potato seeds.
The company said that the new plan includes the construction of a plant in Guanajuato, and will aim to improve its agricultural model, infrastructure, sustainability initiatives, and community development programs in the country.
From the total amount, USD1bn will go into building the facility, PepsiCo’s first plant in Mexico in 20 years. The location is expected to become fully operational by the end of 2025. The improvements in PepsiCo’s agricultural practices in Mexico are part of the company’s collaboration with its regional partner, Grupo Gepp.
The investment is also meant to strengthen PepsiCo’s sustainability agenda, as the company is looking to increase its use of renewable energy in its operations and aims to further reduce CO2 emissions.
PepsiCo will also continue efforts to expand its product portfolio to include increasingly healthy choices. Case in point, USD13m will go towards finding new ways to reduce saturated fats in its products, while USD7m will be invested in the community development programs with a focus on water, recycling, nutrition, and the empowerment of women.