PepsiCo expands production in Mexico with a $467m Sabritas plant while navigating new soda tax reforms and strengthening local agricultural supply chains.

MEXICO – PepsiCo has inaugurated a new Sabritas manufacturing plant in Celaya, Mexico, with an investment exceeding $467 million, marking a key milestone in its broader $2 billion investment plan in the country for 2025–2028.
The company said the project is aimed at expanding production capacity, strengthening agricultural supply chains, and supporting long-term growth in one of its most important global markets. Mexico remains PepsiCo’s second-largest market worldwide.
The Celaya facility adds 66,500 tonnes of annual production capacity and features three production lines for major brands including Sabritas, Doritos, Cheetos, and Ruffles.
PepsiCo stated that the plant integrates sustainability-focused technologies such as water recirculation systems, rainwater harvesting, solar panels, and LED lighting to improve efficiency and reduce environmental impact.
“This investment reflects our commitment to Mexico and our confidence in its long-term growth potential,” PepsiCo said in a statement, adding that it will continue investing in infrastructure, talent, and technology in the country.
The investment also reinforces PepsiCo’s agricultural value chain in Mexico. The company works with more than 40,000 local producers and purchases approximately 20% of the country’s potato production. It also sources key raw materials such as corn, wheat, banana, and cocoa domestically, using 100% Mexican white corn in its products.
The expansion is expected to boost regional economic development in Guanajuato, where PepsiCo’s operations now support nearly 2,900 jobs. This includes 210 new specialized direct roles at the Celaya plant and around 800 indirect jobs across logistics, transportation, and agriculture.
The facility is supported by 34 distribution centers and more than 1,100 delivery routes, enhancing connectivity across the Bajío region. Celaya continues to strengthen its position as a major logistics and industrial hub in central Mexico.
The investment comes as Mexico’s beverage industry adapts to updated fiscal measures targeting sugar consumption.
From January 1, 2026, the government nearly doubled the specific tax on sugary drinks from MX$1.64 per liter to MX$3.08 per liter and extended the tax to beverages containing artificial sweeteners.
Authorities said the reform aims to reduce consumption linked to obesity, diabetes, and other noncommunicable diseases. However, some consumers and industry observers have raised concerns about rising costs and the overall effectiveness of the policy.
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