PepsiCo Invests $100 Million to Modernize and Expand Concentrate Plant in Uruguay

Colonia del Sacramento was the scene of a milestone for foreign investment in Uruguay: PepsiCo officially inaugurated its new storage center at the beverage concentrate plant, as part of a modernization project that required more than US$100 million over the last year and consolidates the company’s presence in the country, where it has been operating for more than six decades.

The ceremony was attended by the President of the Republic, Yamandú Orsi; the Minister of Economy, Gabriel Oddone; the Minister of Industry, Energy, and Mining, Fernanda Cardona; the Minister of Foreign Affairs, Mario Lubetkin; and the Mayor of Colonia, Guillermo Rodríguez. Hosting on behalf of the company were PepsiCo CEO International Beverages Eugene Willemsen; Colonia plant director Martín Chacín; general manager and senior vice president of Latin American Beverages Eric Shell; and global vice president of concentrate operations Evan Norton, along with regional and international executives from the company.

Uruguay, a reliable partner for growth

In his speech, Willemsen highlighted Uruguay’s strategic role within the global operation.

“Uruguay is the only country in Latin America where we operate through three essential pillars of our business: food, beverages, and concentrates. Here in Colonia, we have the heart of our beverage business in Latin America.

"From here, we produce for 27 markets across the Latin American continent, manufacturing some 34 different beverage brands that we proudly sell in all those markets in Latin America and, we hope, soon beyond,” he said.

He added that the company’s strategic presence in the country is a testament to Uruguay’s reliability and stability, which fosters its long-term growth.

The new 5,500 m² space will increase storage capacity by 55% and add world-class technological innovations.

“Since 2021, when we took on the challenge of carrying out the US$64 million investment plan, we knew we had an ambitious task ahead of us. However, today we can announce that we have invested more than US$100 million in a series of projects aimed at expanding our production capacity and equipping our plant with new technologies, which we are confident will contribute to Uruguay’s long-term development,” said Martín Chacín, director of the Colonia plant.

The construction involved 25 national companies, nine from Colonia, and generated direct employment for 85 people and more than 180 indirect jobs.

Chacín also highlighted that the Colonia plant exports to 23 countries in Latin America, contributing approximately 1% of Uruguay’s GDP and representing 6.3% of the country’s exports in 2024.

Uruguayan talent and sustainability

The plant manager emphasized the role of human capital in the company’s success. “Uruguay stands out for its highly trained human talent, with solid knowledge of technology and digitalization and an admirable level of commitment and dedication. The progress we see here today would not be possible without our people’s firm and constant contribution,” he said.

PepsiCo’s commitment goes beyond the economic. In line with PepsiCo Positive (pep+) strategy, the Colonia plant operates with 100% renewable energy and recycles 99.5% of its waste.

“Uruguay is absolutely committed to an increasingly sustainable future. And at PepsiCo, we are fully aligned with this vision,” Chacín said.

Willemsen added, “As I toured the plant, it was fabulous to see how we combine cutting-edge technology with the great people of Colonia who work here. [...] I am equally proud of everything we do to make our operations more sustainable daily.”

An investment model for Uruguay

Economy Minister Gabriel Oddone framed the project as an example of strategic investment for the country. “What we have just seen and know about this venture is everything right about investment. It is a high-tech investment, aimed at promoting exports, located in the country’s interior, and generating quality employment. It creates jobs for highly qualified workers, and many of the people involved are women. A country like Uruguay can only celebrate this long-standing partnership with the company,” he said.

Oddone reaffirmed that Uruguay will continue strengthening its investment and capital attraction regimes to sustain its global positioning as a stable, reliable, and open country.

A long-term relationship

With over 350 direct employees in Uruguay, PepsiCo ranks among the country’s leading exporters. It has maintained a relationship of more than 30 years with the Colonia Free Trade Zone, where one of its most strategic concentrate plants globally is located.

“This journey does not end here, because in Uruguay, we can look to the future and plan with security and confidence. We continue to invest in Uruguay and grow together,” concluded Martín Chacín.

Willemsen reinforced this vision of the future. “We hope to continue investing here in Colonia and make Colonia an even stronger heart of our beverage business across the continent and beyond,” he concluded.