Nestlé commits additional US$1B to Mexican manufacturing expansion
Key takeaways
- Nestlé pledges another US$1 billion to expand and modernize Mexican manufacturing.
- The commitment brings planned investment for 2025–2030 to US$2 billion.
- Domestic sourcing and coffee farming initiatives support its growth strategy.
Nestlé has pledged an additional US$1 billion for its Mexican operations for 2028–2030, with plans to expand manufacturing capabilities, modernize facilities, and strengthen domestic raw material sourcing.
The commitment brings its combined investment commitments in Mexico across 2025–2030 to US$2 billion, following the US$1 billion program unveiled in January 2025.
The new phase will fund technology upgrades and more efficient production processes. The announcement does not provide a factory-by-factory breakdown or quantify the planned capacity increases.
“We want to strengthen our production capabilities, support Mexican agriculture, and continue generating opportunities,” says Fausto Costa, CEO of Nestlé Mexico, in a statement translated from Spanish.
Building production capacity
The 2025–2027 plan covered production lines in Veracruz, Guanajuato, Querétaro, and the State of Mexico, alongside a new distribution center intended to strengthen Mexico’s role as an export hub.
Nestlé’s latest announcement points to progress under that earlier program, including upgrades at Maggi’s State of Mexico factory and expanded production capacity at Nescafé’s Veracruz facility.
Separately, Nestlé projected spending about US$2 billion on Mexican agricultural products during 2025–2027, including milk, coffee, cocoa, and fruit. That purchasing forecast is separate from the manufacturing investment commitments.
Strengthening coffee supply
Nestlé says domestic raw material sourcing and regenerative agriculture will support its growth plans. Its Nescafé Plan has trained more than 16,000 farmers in Mexico and distributed over 72 million seedlings, according to the company.
Its sourcing efforts also include higher-yielding coffee varieties. As we reported in May, Nestlé’s Roubi 1 and Roubi 2 robusta varieties are being used in Mexico, where the company says they deliver up to 50% higher yields.
Coffee remains a major growth driver for the group. Nestlé’s first-half 2026 results showed organic growth of 7.5% in coffee, led by Nescafé, compared with 3.6% for the group.
Food and snacks recorded 3.7% organic growth, supported by brands including Maggi, KitKat, and Milo. However, higher coffee and cocoa costs contributed to a decline in the group’s gross margin, alongside tariff pressure and the infant formula recall.
