Nestlé has put together a $1bn investment package for its business in Mexico over the next two years.
The Swiss giant is planning to increase the capacity of production plants in Veracruz, Guanajuato, Querétaro and the State of Mexico.
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It is also building a distribution centre to “consolidate” its Mexican arm as “an export hub”, the company said in a statement. From Mexico, Nestlé supplies around 70 countries.
The world’s largest food maker told Just Food that 50% of the investment will be focused on increasing the its coffee production capacity in Mexico.
Another quarter of the funds will go towards growing pet-food production in the country, while the remaining 25% will be spent on expanding the output of dairy and culinary products, as well as on the distribution centre.
Steve Presley, the CEO of Nestlé’s business in the Americas, said: “Nestlé Mexico has established itself as the fourth most important market for Nestlé worldwide; it is also the second in which the company invests the most, a testament to the commitment and trust we have in this country.”
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By GlobalDataIn January 2020, Nestlé announced investment of $700m in its facilities in Mexico.
The company has been present in Mexico for more than 94 years and employs more than 13,000 people in the country.
The business markets global brands such as Nescafé, Nesquik and Carnation but also local labels such as Abuelita and Carlos V.
According to Nestlé’s annual report for 2023, the company that year generated SFr3.94bn ($4.34bn) in sales in Mexico, a rise of 13.9% in Swiss francs and 6.8% in local currency.
