PepsiCo plans $5bn investment in Mexican operations

American food and beverage company PepsiCo has outlined plans to invest $5bn in its Mexican operations to further strengthen its food and beverage business in the country.

Mexico is one of the key countries in the company’s global growth plans.

In recent years, PepsiCo has made significant investments to strengthen its presence in emerging markets, which represented 35% of its revenues in 2012.

PepsiCo chairman and CEO Indra Nooyi said that the investments made to bolster the company’s position in key markets are fuelling its success and positioning it to deliver sustainable long-term growth.

Nooyi 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 proposed investment is expected to create 4,000 new jobs, and will focus on four key strategic priorities – innovation and brand building, infrastructure, agriculture and community.

The company intends to expand its product portfolio behind food and beverage brands and cater to the evolving needs of local consumers.

It plans to strengthen its manufacturing capabilities with new production lines to meet increasing demand, as well as invest in additional selling and delivery infrastructure across the country.

In addition, the company seeks to partner with local farmers and invest in sustainable agriculture programmes and continue to invest in local communities and societal development projects.

PepsiCo Mexico runs the Sabritas, Sonric’s, Gamesa, Quaker, Pepsi and Gatorade business units, and employs over 40,000 people.

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Image: PepsiCo chairman and CEO Indra Nooyi. Photo courtesy of PepsiCo Inc.