PepsiCo Inc. has announced plans to invest $5 billion in Mexico over the next five years in an effort to strengthen the firm’s Latin American food and beverage footprint.
PepsiCo has invested aggressively in recent years to strengthen its presence in developing and emerging markets, which in 2012 represented 35% of the firm’s net revenue.
PepsiCo’s investment, which is expected to create 4,000 new jobs in the Mexican economy, will focus on four main areas: innovation and brand building (e.g. R&D, expanded product offering and increased manufacturing), infrastructure (improved selling and delivery and increased efficiency), agriculture (local farmer partnerships and sustainability efforts) and community (societal development through the PepsiCo Mexico Foundation).
"The investments we've made to bolster our position in key markets around the world are fueling our success and positioning PepsiCo to deliver sustainable long-term growth," said PepsiCo chairman and CEO Indra Nooyi. "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."