The Mexican Pet Solutions division of Archer Daniels Midland (ADM) announced an investment of US$30 million in a new production line at its Guadalajara pet food plant, active since 1961.
The new operation is kicking off in January 2023, and its purpose is to supply the northern markets of Mexico and Colombia, where ADM Pet Solutions has a presence.
ADM has experienced rapid growth in the Mexican market in the past 10 years, using two main strategies: taking market share from leaders Purina and Mars while also increasing its base of consumers.
Due to rapid growth in the domestic market, the company decided to expand its production capacity in Mexico, according to a press release quoting Carlos Posadas, vice president of Pet Solutions for North Latin America at ADM.
The new production line for pet food products is part of a master development plan that includes a distribution center in the neighboring municipality of El Salto. The new facility will include cutting-edge technology to reduce its environmental impact, consuming less water, gas and electricity, and will aim toward gender equality regarding its hiring policy.
ADM is the third largest company in the Mexican pet food market. The company also exports to neighboring countries in Central America, such as Guatemala and Panama.
According to a 2016 article on ElEconomista.com, ADM’s pet food facility in Guadalajara may have a total capacity of 80,000 metric tons per year, which, combined with its pet food plant in Morelos state, adds up to 160,000 metric tons for the market. The article said the company aimed to increase its production capacity by 200,000 metric tons of pet food by 2020.
The newly announced investment will increase the production capacity of ADM’s pet food brands such as Ganador, Minino, Top Choice, Full Trust, and Full Life, comprising 109 new product varieties.
Iván Franco is the founder of Triplethree International and has collaborated on hundreds of research projects for several consumer goods industries. He was granted the Global Consultant of the Year award by Euromonitor International and authored the book 17 Market Strategies for Growth (in Spanish).
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