Mexico City - PepsiCo, Inc. has announced plans to invest $4 billion in Mexico between 2019 and 2020 as part of a broad growth initiative focused on four strategic pillars.
"We are proud of our more than 110 years of history in Mexico, and we are excited for the next 100," said Ramon Laguarta, chairman and chief executive officer of PepsiCo.
"Mexico is our largest operation in Latin America and the second worldwide. It is an honor 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."
Investment will focus on four strategic pillars. First, the company has its sights set on development of a single agricultural model that benefits the production chain. The PepsiCo Mexico System, which comprises PepsiCo Alimentos Mexico (PepsiCo Mexico Foods, PMF) and its strategic partner Grupo Gepp, plans to invest more than $1 billion in local raw materials, such as potatoes, corn and sugar, from small, medium and large producers.
Second, PepsiCo said it will look to strengthen its infrastructure to maximize production capacity. The company said PMF intends to invest $109 million in Mexico's first new plant in 20 years. The facility, which will be located in Guanajuato, will make a variety of PepsiCo snacks, including Doritos, Sabritas and Cheetos. The facility is expected to create an additional 1,000 jobs when it reaches full capacity in 2025.
A third pillar is development of a strong sustainability agenda. PepsiCo said PMF will continue to work to reduce CO2 emissions and increase the use of renewable energy in its operations in Mexico. The company also said it plans to invest $13 million to further reduce saturated fats.
Finally, PepsiCo said it remains committed to promoting community development. Through global and local foundations, the company said it plans to invest more than $7 million in development programs that are focused on water, recycling, nutrition and the empowerment of women.
Grupo Gepp CEO Miguel Antor concluded that "the announced initiatives program confirms the long-term business philosophy and Grupo Gepp's commitment to continued reinvestment in Mexico."
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