trending Market Intelligence /marketintelligence/en/news-insights/trending/prnns6tmv9nixe6dx00qzw2 content esgSubNav
In This List

PepsiCo's partner bottler Grupo Gepp suspends operations in Mexican town

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


PepsiCo's partner bottler Grupo Gepp suspends operations in Mexican town

Mexican-based bottling and distribution company Grupo Gepp, which is a partner bottler of PepsiCo Inc. in Mexico, is temporarily closing its commercial operations and distribution center in Ciudad Altamirano in the state of Guerrero due to security concerns, PepsiCo told S&P Global Market Intelligence in an email.

The move came on the heels of reports that gangs are threatening companies in the city and threatening the safety of workers, Bloomberg reported.

"Our bottler Grupo Gepp made the difficult decision to suspend its beverage distribution operations in [the city of] Altamirano to guarantee the security of its people and its supply chain," the company said in the statement. "Pepsico respects Grupo Gepp's decision."

PepsiCo said it will continue "normal operations" in Mexico, including in the state of Guerrero.

In a separate statement, provided by PepsiCo, Grupo Gepp said the closure of commercial operations and a distribution center is "temporary" and "due to the lack of conditions required for the distribution of its product portfolio to the market."

In March, Coca-Cola Co.'s Mexican unit Coca-Cola FEMSA SAB de CV closed its unit due to similar issues in the town. Coca-Cola FEMSA said at the time that employees had received "threats and aggression from organized crime" and that the facility had been damaged.