PepsiCo Operates New Distribution Center

The industrial complex that began operating in October 2020 in the municipality of Villa Nueva, department of Guatemala, has an area of 43,500 square meters, an installed capacity of 12,000 pallets and required an investment of approximately $27 million.

Thursday, December 17, 2020

The new logistics center has 29 dispatch doors and a system of product selection through automated voice command, informed the company dedicated to the commercialization of carbonated beverages and snacks.

You may be interested in "Soft Drinks: What the Consumer Thinks"

Clara Contreras, general manager of PepsiCo Foods for North Central America, said that "... At PepsiCo we reaffirm our commitment to the development of the local economy through our new Distribution Center, which will benefit Guatemala and the region. This investment allows us to be in a key location that connects to the east and west of the country through major highways. With this new center we will respond to market demands with efficiency, thanks to a technified logistics that ensures sustainable growth for the coming years."

According to an official statement from PepsiCo, the new center will allow the company to carry out inventory control and distribution of iconic and beloved brands such as Lay's, Cheetos, Doritos, Tortrix, Chokis, Florentinas and Emperador.

See "Snacks: What Brands Are Consumers Considering?"

"In addition, the company also announced that during 2019 and 2020 it invested $43.15 million to innovate different processes in its value chain. This for the modernization of the Guatemala Plant, purchase of a new corn line, renovation of its potato line, and innovation of the sales process, empowering its collaborators through state-of-the-art digital tools to offer a more effective service to customers," the document explains.

Also see "Central America: $150 Million in Logistics Parks"

As a result of the modernization of the Lay's potato line, PepsiCo Guatemala will be able to supply part of its salted snack portfolio with a production capacity of 920,000 units per day for Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama. This represents an annual volume of 7,000 tons of local potatoes grown by 40 producers in Quetzaltenango, Alta Verapaz and Petén. The new corn line will be operational by 2021 and will increase Guatemala's tortilla production capacity by 85% for brands such as Doritos and Tortrix.



More on this topic

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February 2021

In Guatemala, the Embotelladora Los Volcanes, which produces and distributes Coca-Cola brand beverages, is executing expansion works at its industrial plant located in the department of Retalhuleu, a project that required an investment of $60 million and is expected to be completed in April 2021.

The project began in March 2019; however, due to the covid-19 outbreak, work was suspended and it was only in the second half of 2020 that work was reactivated.

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The company founded with Guatemalan and Mexican capital Carbox has invested $7 million in the installation of a plant with capacity to extract 48 tons of gas per day.

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Pepsi Changes Image

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Guatemala is the first country in Latin America where PepsiCo is launching its new image, after doing so already in the United States.

CabCorp, Pepsi’s bottler for Central America and the Caribbean, invested nearly $2 million for the launch in Guatemala, which includes investment in the factory, changing the labels, changing the images in the refrigerator equipment, and an aggressive advertising campaign, among other activities.

Joint Venture Between CABCORP and PepsiAmericas

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Central America Beverage of Guatemala and PepsiAmericas will combine operations in the Caribbean, Guatemala, El Salvador, Honduras and Nicaragua.

This strategic alliance is aimed at geographic growth and expansion, and the final signing is expected during the third quarter of 2009. Under the agreement, CABCORP will control 82% of the joint venture and PepsiAmericas the remaining 18%.

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