PepsiCo to Acquire Grupo Empresarial Gepp, Expanding Its Bottling Operations in Mexico
PepsiCo has announced plans to acquire the remaining stake in Grupo Empresarial GEPP, a move that will give the company full control over its bottling operations in Mexico. The acquisition, expected to close by early 2025, marks a significant expansion of PepsiCo’s presence in one of its key international markets.
Strategic Expansion in a Key Growth Market
Grupo Empresarial GEPP, previously a joint venture between PepsiCo, Cultiba, and other investors, has been PepsiCo’s primary bottler in Mexico. By taking full ownership, PepsiCo aims to streamline its supply chain, enhance operational efficiency, and drive long-term growth in the region. Mexico represents a critical market for the beverage giant, given the strong demand for carbonated soft drinks and non-carbonated beverages.
Implications for the FMCG Industry
The acquisition highlights a growing trend among multinational beverage companies to consolidate their bottling operations. By fully integrating GEPP into its portfolio, PepsiCo will have greater agility in responding to market trends, optimizing distribution channels, and accelerating innovation in the beverage category.
In recent years, companies in the FMCG sector have sought greater control over their supply chains to improve profitability and service efficiency. Full ownership of bottling operations allows for better alignment between production, distribution, and marketing strategies. With this move, PepsiCo is positioning itself to compete more effectively against rivals such as Coca-Cola, which operates a highly integrated bottling network.
Regulatory Considerations and Timeline
The transaction remains subject to regulatory approvals in Mexico and is expected to be finalized by early 2025. PepsiCo has stated that it is committed to working closely with relevant authorities to ensure a smooth transition. Should the deal proceed as anticipated, PepsiCo will gain deeper market penetration in Mexico, a country that represents one of the highest per-capita consumption rates for soft drinks globally.
Looking Ahead
This acquisition underscores PepsiCo’s broader strategy of strengthening its infrastructure in high-growth markets. By securing full ownership of GEPP, the company is poised to enhance operational efficiencies and better serve Mexican consumers. The move is set to drive long-term