Global Processing

PepsiCo unveils $5 billion investment program for Mexico

January 29, 2014

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In recognition of Mexico's importance for its global growth plans, PepsiCo intends to strengthen its local food and beverage operations through investments totaling $5 billion. The U.S. company said it would spread the spending over five years, focusing on four key areas: innovation and brand building, infrastructure, agriculture and community.

PepsiCo entered the Mexican market in 1907 and currently ranks among the biggest consumer product manufacturers in the country. In 2012, Mexican sales generated $4 billion for PepsiCo. Mexico has become one of the key Latin American markets given its growing middle class and the ample opportunities it presents for long-term growth.

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The announced investment program comes as part of PepsiCo's aggressive spending in emerging markets, which were responsible for 35% of group net revenue in 2012. The company employs more than 40,000 people in Mexico and expects its new investments to create a further 4,000 jobs for the local economy.

Investment in innovation and brand building will be a strategic focus for PepsiCo, chairman and chief executive Indra Nooyi said. The company plans to boost its portfolio with new products and invest further in R&D. With regard to infrastructure, the plan is to boost local production capacity through the addition of new manufacturing lines and to expand selling and delivery capabilities. A portion of the money will go into agricultural investment in the form of sustainable agriculture programs, which will enhance yields and conserve resources. Last but not least, PepsiCo will maintain its investment in local communities and societal development initiatives via the PepsiCo Mexico Foundation.