US food and beverage giant PepsiCo has outlined a US$3bn investment package for its business in Mexico as it looks to build its Sabritas and Gamesa operations south of the border.

The company said yesterday (20 November) that around $1bn of the spending would go on marketing and advertising of its beverage brands in Mexico between now and 2011.

The rest of the cash will go towards R&D, manufacturing and distribution and marketing for its food business over the next five years.

"For the last 100 years, Mexico has been a key market for PepsiCo, and today's news is the latest proof that we will continue to invest for growth here," PepsiCo Americas Foods CEO John Compton said in Mexico City.

Earlier this week, PepsiCo bottling arm, Pepsi Bottling Group, announced it would close three plants and 30 distribution centres in Mexico.

Up to 2,200 jobs are expected to be cut in the move, which forms a central plank of the group's new restructuring programme that is intended to save up to US$160m annually once completed.