Ferrero is investing US$86 million to nearly double the production capacity of its manufacturing hub in San José Iturbide, Guanajuato, Mexico.
The expansion targets the company’s core confectionery lines, including Nutella and Kinder, reinforcing the brand’s footprint in one of its key growth markets.
The capital expenditure underscores Ferrero’s strategic bet on North American demand, even as the broader consumer staples sector faces margin pressures from inflation and shifting consumer preferences.
By scaling up local production, the company aims to improve supply chain resilience and reduce logistics costs associated with importing finished goods from Europe.
This move comes at a time when multinational food companies are increasingly localizing production to mitigate geopolitical and trade risks.
The investment also aligns with Mexico’s broader appeal as a manufacturing destination, benefiting from nearshoring trends and favorable trade agreements.