Nestlé to invest US$1BN in Mexico to bolster F&B production with local sourcing

Nestlé is planning to expand its footprint in Mexico through a US$1 billion investment over the next three years. The plan includes boosting production capacities at its Veracruz, Guanajuato, Querétaro, and the State of Mexico plants and developing a new distribution center to establish Nestlé Mexico as an export center.

The company has also allocated US$2 billion to purchase agricultural inputs such as milk, coffee, cocoa, and fruit from Mexico from 2025 to 2027. 

President Dr. Claudia Sheinbaum Pardo, Steve Presley, CEO of Nestlé for the Americas Zone, and Fausto Costa, executive president of Nestlé Mexico, announced the investment during a recent meeting held at the National Palace in Mexico.

“Nestlé Mexico has established itself as the fourth most important market for Nestlé worldwide, as well as being the second market in which the company invests the most,” says Presley.

“The recent historic investment not only reinforces our sustainable growth strategy, but also reaffirms our dedication to contributing to the economic and social development of the region.”

Advancing coffee business

Mexico is important for Nestlé because, according to World Coffee Research, it is one of the top ten exporters of coffee in the world. The country mostly produces arabica, but in recent years, robusta has been introduced in the lowlands.

Mexico is also Nestlé’s main coffee producer globally, with coffee production in the country projected to reach 3.89 million 60kg bags for 2024/25. 

Favorable coffee prices and ongoing efforts to improve coffee varieties are the key reasons behind this forecast, as per the US Department of Agriculture.

In 2022, the food giant invested US$340 million in the Latin American nation, with a Nescafé coffee factory in Veracruz. At the time, it called the plant its “most modern and sustainable coffee plant” with wastewater treatment systems to ensure 100% of water recirculation, zero wastewater discharges and zero waste to landfills.

Responsible sourcing

Nestlé México says it will continue to support the development of the Mexican countryside through its responsible sourcing programs, such as the NESCAFÉ Plan and the Nestlé Plan Cacao. These initiatives operate in the states of Chiapas, Tabasco, Veracruz, Oaxaca, Puebla and Guerrero. 

These programs aim to “positively transform agricultural communities” by providing training and technical assistance and promoting regenerative agriculture practices.

“Each investment project for our operations seeks to positively impact the economic development and prosperity of the different states of the Mexican Republic where we operate; strengthen our value chain and, of course, create shared value for communities and the planet,” says Costa.

In 2022, the company committed to sustainable sourcing and carbon neutrality goals, which include promoting regenerative agriculture.