USA — American beverages and snacks maker PepsiCo is investing US$292.5 million in boosting its manufacturing capabilities in the United States.
According to a statement from PepsiCo Beverages North America (PBNA), a division of PepsiCo, Inc., US$260m will be invested in expanding its manufacturing facility in Tucker, Georgia.
PBNA will expand the facility by more than 260,000 square feet, making it one of the largest manufacturing facilities in the company’s portfolio.
Once fully operational, the expansion will increase production at the plant five-fold by 2025 and create at least 136 full-time jobs.
“This expansion will greatly increase PBNA’s production serving nearby Atlanta and the wider Georgia region to continue the growth of our business and customers in the area,” said Karen Jordan, chief supply chain officer at PBNA.
Through its operating facilities, PepsiCo has committed US$460 million of capital in Georgia over the past two years.
In July 2020, the maker of Pepsi, 7up and Mountain Dew soda brand invested US$200 million to expand its Frito-Lay plant in Perry, Ga.
US$32.5m Virginia expansion
Across state in Virginia, PepsiCo businesses are investing a combined US$32.5 million to build a pair of new, state-of-the-art warehouse and distribution facilities in West Virginia by the end of 2022.
PBNA is expected to build a US$16.5 million, 100,000-square-foot warehouse and distribution facility in Ona, West Virginia.
The other will be a US$16 million, 70,000-square-foot state-of-the-art distribution center for Frito-Lay North America in Scott Depot, WV.
Combined, the two facilities will employ 185 individuals in Cabell and Putnam counties, including 25 new, full-time warehouse, sales, and driver positions available to West Virginians.
Construction is already underway on the PBNA facility in Ona which will distribute PepsiCo beverages – including Pepsi, Gatorade Zero, bubly, Aquafina, and Pure Leaf – per year to customers throughout West Virginia and Kentucky.
It will also add several new positions to PepsiCo’s workforce in the state which currently number about 700 while retaining 80 existing West Virginia jobs.
The new Frito-Lay facility in Scott Depot is currently scheduled to open this fall and be fully operational before the end of the year.
It will replace the current Frito-Lay facility in Poca and, at more than four times the square footage, significantly expand operations, according to PepsiCo.
With a 35-dock capacity, the new facility will nearly double distribution capacity to serve customers in several states and will allow for 10 years of potential growth.
Meanwhile, PepsiCo is reportedly exploring options for its business in Russia, including writing off the value of the unit, according to The Wall Street Journal.
PepsiCo has so far suspended sales of its Pepsi-Cola, 7Up and Mirinda brands, along with capital investments and all advertising and promotional activities.
The company has however noted that it will keep selling some essential products, like milk, baby formula and baby food.
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