PepsiCo’s Commitment to Mexico’s Development
PepsiCo, a leading food and beverage company, has joined the “Hecho en México” program and reaffirmed its commitment to invest $100 million in the State of Mexico between 2023 and 2025. The company’s president for PepsiCo Alimentos México, Isaías Martínez, expressed gratitude for the opportunity to display this seal on their brands, symbolizing their dedication to Mexico’s development and transformation through its people, agriculture, and innovation.
Investment Breakdown
- $17 million for optimizing production and distribution systems
- $80 million for expanding their electric vehicle fleet, which includes nearly 1,500 units
- $9 million for the Centro de Desarrollo Agrícola Sustentable (CDAS), a research and development center specializing in agriculture
Martínez emphasized that the State of Mexico is crucial for PepsiCo’s operations, having created 4,500 direct jobs and contributing to an additional 50,000 jobs in agriculture. The “Hecho en México” seal will be visible on over 200 products from brands like Gamesa, Sabritas, Quaker, and Mafer.
Sourcing Agricultural Ingredients
More than 90% of PepsiCo’s agricultural inputs, such as potatoes, corn, and wheat, are sourced domestically. Annually, the company purchases 580,000 tonnes of potatoes and corn from Mexican producers, with 345,000 tonnes being potatoes.
“We are the leading industrial buyer of potatoes, acquiring 20% of Mexico’s national production,” stated Martínez.
CDAS and Local Agriculture
At the CDAS, PepsiCo produces 9 million plantlets annually, yielding 19 million seeds that supply 100% of their potato production in Mexico. These seeds are distributed to states like Jalisco, Sinaloa, Sonora, Chihuahua, Nuevo León, and Coahuila for planting and replanting.
Over three years, in collaboration with local producers, these seeds are multiplied to meet the volume required for sustaining PepsiCo’s national potato production demands.
Government Recognition
Andrea Solano, the head of Normativity, Competitiveness, and Competition at the Secretariat of Economy, highlighted that obtaining the “Hecho en México” distinction is more than just a formal process; it’s a recognition of PepsiCo’s commitment to Mexico’s economic development.
“PepsiCo’s impact on Mexico represents 0.5% of the national GDP, but crucially, this impact is entirely anchored in a model prioritizing local development, sustainability, and inclusion,” Solano emphasized.
With 115 years of presence in Mexico, PepsiCo is one of the country’s leading agroindustrial companies, operating 15 production plants and 276 distribution centers. They cater to nearly 1 million small retailers, visiting them 1.2 to 1.5 times a week on average.