PepsiCo expands snack operations in Brazil with new production line
BRAZIL- PepsiCo, the US-based snacks and beverages giant, has unveiled plans to further bolster its snacking production in Cabo de Santo Agostinho, Brazil, by installing a new production line.
According to PepsiCo, this move will enable the company to produce its popular Torcida brand of snacks at the existing facility.
The Cabo de Santo Agostinho site, which already produces Cheetos and Cebolitos snacks for the local market, will now experience a 30% increase in production capacity with the addition of this new line.
The expansion is part of PepsiCo’s strategy to strengthen its presence in the Pernambuco region, near the city of Recife.
While specific financial details regarding the facility’s development have not been disclosed, the expansion project is expected to create approximately 300 new direct and indirect job opportunities.
The investment aligns with PepsiCo’s long-standing presence in Brazil, where the company has operated for an impressive 70 years.
The work on the plant expansion has already commenced, and it is scheduled to be completed by May 2024. Marcelo Zanetti, Director of Operations for PepsiCo Brazil, highlighted the strategic importance of the Northeast region, stating, “The Northeast region is crucial for PepsiCo, and we have continuously invested in it. Proof of this is that our production capacity has increased by more than 50% in the last four years.”
Currently, PepsiCo operates eight factories in Brazil, employing approximately 700 individuals in the Pernambuco region alone. This expansion initiative represents a significant stride for the company in reinforcing its foothold and contributing to the local economy.
Notably, in August of the preceding year, PepsiCo agreed to sell certain biscuit assets in Brazil to local manufacturer Camil Alimentos. The deal involved the sale of PepsiCo’s CIPA Industrial Food Products and CIPA Nordeste Industrial de Produtos Alimentares, along with associated factories and employees, to Camil Alimentos, a move that realigned both companies’ strategic directions in the region.
As part of its expansion plans, PepsiCo recently announced plans to construct a new Lay’s potato chip production plant in India, with an estimated investment of US$95 million, to be completed by 2025.
Additionally, the food and beverage processor announced last month a substantial investment of US$200 million to build a new snack factory in Indonesia, a move that marks the company’s return to the country after a two-year absence.
