Processing Magazine

PepsiCo to invest up to $3 billion in Mexico in the next 5 years

November 24, 2008

The Associated Press reports that PepsiCo Inc. plans to invest up to $3 billion in Mexico in the next five years to grow its beverages and food brands Sabritas and Gamesa there. The company will spend $2 billion on manufacturing, marketing and research and development for its food businesses. PepsiCo Americas Foods Chief Executive Officer John C. Compton told company executives at an event in Mexico City that the company will spend the remaining $1 billion on marketing and advertising for Pepsi''s beverages in the country. The company has 60 production centers, 22 manufacturing plants and 667 distribution centers there. With 40,000 employees in Mexico, PepsiCo is among the country''s largest employers. As part of its investment in Mexico, the company will introduce some of its key brands in Mexico to the U.S., where Hispanic populations are rising. The company is expanding its presence abroad as it faces a slumping soft drink market in the U.S. In the U.S. market, the company is noticing its penetration stays high but consumers are drinking its soft drinks less as they change their habits for health reasons or to save money, Massimo d''Amore, Chief Executive Officer of PepsiCo Americas Beverages, told investors. He told investors at a conference in New York the company wants to engage consumers in the brands, much like it does with Mountain Dew, and win them back through product innovation.