Colombia: PepsiCo to invest USD 1 billion and could strengthen its potato supply chain

PepsiCo announced an investment of USD 1 billion in Colombia over the next five years, aimed at expanding production capacity, modernizing operations and strengthening its distribution network. The announcement was made by Colombian President Abelardo de la Espriella, who said the plan will support more than 2,000 farmers and have an impact on employment and the commercial supply chain.

The initiative is particularly relevant to the potato value chain. PepsiCo is the largest industrial buyer of potatoes in Colombia, purchasing around 84,000 tonnes annually, and operates processing plants in Funza, Cundinamarca, and Guarne, Antioquia. 
 

PepsiCo Strengthens Its Potato Supply Chain

In April 2025, the company inaugurated a potato post-harvest and storage center in Tenjo, Cundinamarca, with capacity to receive up to 20,000 tonnes, a project that required an investment of approximately COP 80 billion. The infrastructure is intended to improve product preservation, reduce losses and make supply from the Cundiboyacense highlands more efficient.

This expansion is complemented by a working agenda with the Ministry of Agriculture to strengthen domestic production of potatoes, plantains and yellow corn. Discussions are focused on improving productivity and quality and include tools related to financing, irrigation, mechanization, seed and greater coordination between growers and the needs of the food industry. 
 

Sustainable Agriculture and Expansion in Colombia

PepsiCo has also been developing sustainable agriculture initiatives in Colombia aimed at improving the efficiency of fertilizer, water and other resource use while reducing the environmental impact of its supply chains.

The company currently has more than 3,800 employees, seven distribution centers and a commercial presence in more than 400,000 points of sale across Colombia, its third-largest Latin American market after Brazil and Mexico.

For now, the company has not specified what proportion of the USD 1 billion investment will be allocated specifically to the potato value chain, nor how the resources will be distributed among plants, regions and agricultural projects. However, given the volume of raw material PepsiCo purchases in Colombia and its recent investments in storage and supply infrastructure, the plan could strengthen integration between primary production and industry.