Nestlé Purina is making a strategic investment of $220 million to expand its plant in Silao, Guanajuato, aimed at significantly enhancing its manufacturing capabilities in Mexico, according to a report by Expansion.
This move is expected to increase its production capacity to 285,000 metric tons of dry food and 50,000 metric tons of wet food, representing an increase of 25% and 40% for each food segment, respectively.
According to Triplethree International, Nestlé Purina currently leads the pet food market in Mexico, producing over 200,000 tons of dog and cat food annually at its two plants in Silao and Cuautitlán. Despite operating two production plants in the country, these facilities have reached their maximum capacity. Triplethree's report noted this has necessitated the importation of several thousand tons of finished products from the U.S. to satisfy local demand, as confirmed by customs data.
This development is not only beneficial for Nestlé Purina but also for the local industry. By expanding its production capacity within Mexico, the company aims to reduce its reliance on intracompany imports and enhance its ability to serve the Mexican market more efficiently. This decision indicates a strategic preference for leveraging its own production facilities rather than relying on local maquilas, ensuring greater control over quality and supply chain processes.
Mexican pet food market continues to grow
Nestlé Purina's expansion is a positive sign for the Mexican pet food market, which continues to grow, driven by increasing pet ownership and demand for high-quality pet food products. The new facility will enable the company to better meet this rising demand, solidifying its market leadership and contributing to local economic development.
The investment in the Silao plant underscores the importance of the Mexican market to the pet food industry. Mexico is a key market for pet food in Latin America, and the demand for premium pet food products is on the rise. With the expansion of the Silao plant, Nestlé Purina is well-positioned to capitalize on this growth and expand its presence in the region.
Iván Franco is the founder of Triplethree International and has collaborated on hundreds of research projects for several consumer goods industries.
