Background on Mars Pet Nutrition and its Relevance
Mars, a global leader in pet nutrition, is celebrating the 30th anniversary of its Querétaro pet food plant. Over the past three years, Mars Pet Nutrition has been in the final stages of a $350 million investment, which will enable the company to capitalize on the growing pet market and foster local development under the “Hecho en México” initiative.
Key Figures and Their Roles
Miguel Fuertes, General Director of Mars Pet Nutrition, emphasized the significance of this investment. He stated that the Querétaro plant has become Mars’s largest pet food production facility globally, positioning Mexico as a strategic hub for supplying other markets in Southwest and North America.
Investment Details and Impact
The $350 million investment, announced in 2022, is nearing completion and has resulted in the creation of approximately 1,000 direct and indirect jobs.
“We continue to invest consistently in the region,” Fuertes added. “We are proudly ‘Hecho en México,’ with 80% of our inputs sourced from national producers.”
Although some materials, such as certain packaging, are still imported due to the lack of local technology, Mars Pet Nutrition actively seeks ways to increase local sourcing. For instance, they have successfully transitioned from importing proteins to sourcing them domestically. Collaborating with farmers, they aim to enhance agricultural practices and boost crop yields, ensuring better corn production. By maintaining local production and adhering to the rules of origin in the USMCA, Mars Pet Nutrition avoids US government tariffs.
Production Capabilities and Market Reach
The El Marqués, Querétaro plant currently produces 522,000 tons of dry and wet pet food annually across 14 production lines.
This facility caters to both domestic and international markets. About 85% of the production is consumed locally, while the remaining 15% is exported to the United States, Argentina, and Colombia.
Mars Pet Nutrition offers a diverse portfolio of 90 products under brands like Pedigree and Whiskas, along with high-protein options and specialized health lines.
Growing Pet Food Market in Mexico
The pet food market in Mexico, valued between $3 billion and $3.5 billion, is one of the largest categories within mass consumption. It is growing at an average single-digit rate, explained Mars Pet Nutrition’s General Director.
This growth is largely attributed to the increasing number of pets in Mexico, surpassing the human population. Fuertes highlighted that he sees high development potential in Mexico, prompting the decision to establish the country as a significant global production center.
Key Questions and Answers
- What is the main investment Mars Pet Nutrition is making in Querétaro? Mars Pet Nutrition is investing $350 million in its Querétaro plant to expand production capabilities and strengthen its position as a strategic hub for Southwest and North American markets.
- How many jobs has this investment created? The investment has resulted in the creation of approximately 1,000 direct and indirect jobs.
- What percentage of Mars Pet Nutrition’s inputs are sourced from national producers? 80% of Mars Pet Nutrition’s inputs come from national producers.
- What is the current annual production capacity of the Querétaro plant? The El Marqués, Querétaro plant produces 522,000 tons of dry and wet pet food annually.
- What is the value of Mexico’s pet food market, and how is it growing? The pet food market in Mexico is valued between $3 billion and $3.5 billion and is growing at an average single-digit rate.
