PepsiCo To Invest $5 Billion In Mexico

PepsiCo, Inc. (NYSE:PEP), a global food and beverage company with more than $65 billion in net revenues and 22 brands in its product portfolio including Pepsi-Cola, Gatorade, Tropicana, Quaker, and Frito Lay announced its plan to invest $5 billion in Mexico over the next five years.

PepsiCo To Invest $5 Billion In Mexico

According to the food and beverage company, its planned investment in Mexico is focused in four key strategic priorities including innovation and brand building, infrastructure, agriculture and community.

Key market for global growth

PepsiCo, Inc. (NYSE:PEP) said it has a long and successful history in Mexico, and it is a primary market for its global growth plans. The food and beverage company emphasized that 35% of its net revenue was generated from developing and emerging markets. PepsiCo made aggressive investments in those developing and emerging markets in recent years.

Indra Nooyi, chairman and CEO of PepsiCo, Inc. (NYSE:PEP) said, “PepsiCo brands have been enjoyed by Mexican consumers for more than a century and we see tremendous opportunities to further expand our food and beverage business. We’re confident in Mexico’s future and we believe this investment will create significant value for PepsiCo, our customers, our shareholders and for Mexico as a whole.”

“The investments we’ve made to bolster our position in key markets around the world are fueling our success and positioning PepsiCo to deliver sustainable long-term growth,” added Nooyi.

Expanding production/product portfolio

With the investment, the food and beverage company plans to expand the range of products under its portfolio to cater to the wide and evolving needs of Mexican consumers. It will also strengthen its capabilities in research and development.

In addition, PepsiCo, Inc. (NYSE:PEP) will enlarge its production capacity by adding new manufacturing lines to meet increasing consumer demand. According to the company, it will invest more on selling and delivery infrastructure across Mexico including new technologies to improve service to retail customers and increase efficiency across its go-to-market systems.

Furthermore, the company aims to strengthen its partnership with local farmers by investing in sustainable agriculture programs that are beneficial for growers and the company.  It will also invest in community and social developments in Mexico.

Nooyi emphasized, “PepsiCo is committed to growing in Mexico, for Mexico. Our investment is guided by Performance with Purpose, which is PepsiCo’s global vision for building a profitable and sustainable corporation that is a good investment for our shareholders, a good environment for our employees, a good citizen in our communities and a good steward of our planet’s resources.”

PepsiCo, Inc. (NYSE:PEP) expects to create 4,000 new jobs in Mexico with its planned investment.