09 May 2019 | News
The PepsiCo Mexico System, composed of PepsiCo Alimentos México (PepsiCo Mexico Foods, PMF) and its strategic partner Grupo Gepp (Gepp), announced an investment plan of 4 one billion dollars
Source: Snacks & Beverage
This investment will focus on strengthening our agricultural model, infrastructure, sustainability agenda and community development programs.
The PepsiCo Mexico System, composed of PepsiCo Alimentos México (PepsiCo Mexico Foods, PMF) and its strategic partner Grupo Gepp (Gepp), announced an investment plan of 4 one billion dollars in Mexico between 2019 and 2020, with an estimated creation of 3,000 new jobs. This investment reinforces its commitment to the country and will continue to contribute to its economic and social development.
Ramón Laguarta, Chairman of the Board and CEO of PepsiCo Inc said, "We are proud of our more than 110 years of history in Mexico and we are excited for the next 100. Mexico is our largest operation in Latin America and the second worldwide. It is an honor for us to have a positive impact at all levels of the country's economy, from the countryside to the corner stores in each location.”
Roberto Martinez, President of PepsiCo Alimentos Mexico, said: "Mexico's competitiveness is key to the success of PepsiCo, and our goal is to make sure that our success is also that of Mexico." The PepsiCo Mexico System is made up of almost 80,000 employees, and each job within the System creates 1.3 additional indirect jobs. According to the Oxford Economics consultancy, PMF and Gepp contribute 0.4% to the country's GDP.
Miguel Antor, CEO of Grupo Gepp, concluded that "the announced initiatives program confirms the long-term business philosophy and Grupo Gepp's commitment to continued reinvestment in Mexico."
The announced investment will focus on four strategic pillars:
1. A single agricultural model that benefits the production chain: PMF and Gepp plan to invest more than 1,000 million dollars in local raw materials, such as potatoes, corn and sugar from small, medium and large producers. PMF plans to renovate its Agricultural Development Center (CDAS) to ensure the supply of high quality potato seeds for the long-term growth of the business.
2. Strengthening infrastructure to maximize production capacity and take advantage of best practices: PMF will invest 109 million dollars in its first new plant in 20 years, which will be located in Guanajuato. When it runs at full capacity (in 2025), it is expected to create an additional 1,000 jobs.
3. A strong sustainability agenda in all its operations and product design: PMF will continue its journey towards the reduction of CO2 emissions and the increase in the use of renewable energy in its operations. The PepsiCo Mexico System will continue with the transformation of its product portfolio, and for that it plans to invest 13 million dollars to further reduce saturated fats.
4. The commitment to promote community development: through its global and local foundations, the PepsiCo System Mexico plans to invest more than $ 7 million in development programs focused on water, recycling, nutrition and the empowerment of women to benefit more than 150,000 people throughout the country.