PepsiCo has set out plans to spend US$5bn over the next five years on expanding its business in Mexico.
Chairman and CEO Indra Nooyi said today (24 January) the US food and beverage giant saw “tremendous opportunities” for growth in the country.
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PepsiCo, which sells products including Quaker cereals and Sabritas crisps in Mexico, will invest in areas including innovation, brand building and production.
The company’s plans were announced as fellow food giant Nestle announced it is to invest US$1bn into its Mexican operations with the construction of two factories.
PepsiCo plans to add manufacturing lines at its plants to boost capacity and invest in its distribution network in the country.
The group plans to expand the range of products it sells in Mexico. It also intends to “strengthen” its R&D in the country, including a site in Monterrey that focuses on the baking category.
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By GlobalDataPepsiCo generated MXN4bn (US$295.4m) of sales in Mexico in 2012. The company is set to publish its 2013 group results next month. PepsiCo’s last official comment on its sales in Mexico were for the second quarter of 2013, when it saw sales increase 7% on an organic basis.
