Nestlé will invest US $1 billion in Mexico over the next three years to expand its production operations, announced President Claudia Sheinbaum after meeting with the Swiss group at the National Palace on Tuesday.
“More good news for Mexico: we met with Nestlé executives at the National Palace, who announced a new investment of one billion dollars. We appreciate the trust placed in our country,” Sheinbaum wrote on the X social media site on Tuesday.
Anuncio de inversión de Nestlé en México
President Claudia Sheinbaum announced Nestle’s planned Mexico investment Tuesday after meeting with Nestlé executives earlier that day.
Nestlé plans to increase the capacity of the production lines at its Veracruz, Guanajuato, Querétaro and México state facilities, as well as develop a new distribution center to establish Mexico as an export hub.
“I think it is a great opportunity to reinforce confidence in Mexico, confidence in its government and the great opportunities that Mexico offers the world,” Nestlé Mexico’s CEO Fausto Costa stated in a video posted on Sheinbaum’s social media.
Nestle’s plan to expand capacity in Mexico forms part of President Sheinbaum’s Plan México investment strategy, announced on Jan. 13. The president described the plan as a long-term “vision for equitable and sustainable development” that promotes economic growth while prioritizing “well-being for our people.”
Nestlé has operated in Mexico for 94 years and currently employs over 13,000 directly and 500,000 indirectly. Women are a reported 45.6% of its Mexican workforce.
“Nestlé México has established itself as the fourth most important market for Nestlé worldwide, in addition to being the second market in which the company invests the most,” Nestlé’s CEO for the Americas Zone Steve Presley said. “This is a testament to the commitment and confidence we have in this country.”
In addition to the US $1 billion investment, Nestlé expects to spend over $2 billion on agricultural products in Mexico between 2025 and 2027, which the company said will support farmers and contribute to Mexico’s socioeconomic growth.
With reports from El Economista, Reporte Indigo and El Universal
Really? Nestle can be pretty brutal.
It’s interesting that Mexico is Nestle’s 4th most important market globally.
I worked for Kraft and Nabisco and believe me this is incredible. That Mexico is the fourth most important market in the world for Nestle, the largest food company in the world. I really want to read the details of the proposal that led them to make this incredibly huge investment (for a food company). They see really great opportunities here and I’d also like to know who Mexico beat out, what were their other choices and why did Mexico win. This is really a big deal for Mexico.
Nestlé sees an opportunity. Mexico, like much of the world is increasing their snacking and eating occasions. From 2006 to 2022, the calorie consumption in Mexican households has shifted toward a less healthy diet, with ultra-processed foods seeing a significant increase of 33.8%. Meanwhile, the consumption of non-processed foods only rose by 4.8%, according to the Regional Economies Report, from Banxico. With calories from ultra processed foods in the 45 – 58% range in wealthy nations like the US and Australia. Along with a growing and more educated workforce making more money, major CPG companies target undeserved countries to fuel their bottom lines by producing crappy junk food that is convenient and will grow their bottom line. When I first started spending time in Mexico, one of my favorite things was that it eas easier to find and buy fresh fruit for a snack than chips, cookies, crackers, & confections. I ate healthy without even trying. Now there are for more convenient ways to access the baked snapck cakes, potato/corn chips, and confection. Snacks represent an area for potential improvement in the diets of Mexican children, especially among those aged 6 to 13 y, for whom each additional snack or eating occasion was linked to even greater increases in total daily energy intake.
Does Nestle produce any healthy foods? Flattering Mexico for being one of its top markets draws attention away from the decline in nutritional value of food available in the ‘developed world’. What percentage of products in the supermarket aisles is Nestle? I don’t know, but it’s high.
Nestle is a modern corporation and therefore the responsibility of its board of directors is to make profit. Nestle has already bought the majority of potential competitors in its food products division. Does the agreement include any protections for local producers? This may or may not be a short term gain for Mexico, but a giant corporation expanding its reach within the country, including adding jobs, promises to be a future tar pit to challenge future administrations.