PepsiCo is making a £58 million investment into its Walkers crisp factory in Leicester as it works to roll-out large-scale upgrades to the facility, representing the group's largest expenditure in the UK over the past 25 years.
In a statement released on 6 June 2023, PepsiCo said the money would pay for an "extensive upgrade" of employee facilities and the installation of a new factory line, in addition to "more sustainable" equipment at the plant.
PepsiCo, which acquired the English crisp staple in 1989, said the investment would help to "secure the future of the factory" and ensure growth of the brand, which was recently named Britain's third biggest grocery brand by The Grocer publication.
Its factory is north of Leicester city centre, just outside Glebelands. One of the units at the 11 Bursom Road is 865,292 square feet, making it one of the biggest crisp factories in the world.
Its plan for the development of the site is four-pronged. Refurbishment work is underway on the staff areas to create new training areas, an on-site restaurant, modern meeting rooms and a "dedicated celebration space".
A new production line will be installed to increase capacity at the factory, allowing products like Wotsits Giants and Monster Munch to be manufactured in the UK, once construction is complete in 2024.
The other focuses include investing in sustainable equipment, such as changing from gas to electric ovens, and investing in new technologies to create healthier snacks.
The decision to move production of some of its snacks back to its UK factory follows suggestions from Cushman & Wakefield that a number of UK companies are reshoring to avoid future supply chain disruption.
In its April Market in Minutes report, the agency said food production, automotive and pharmaceutical were all taking space in the UK to make themselves more insulated from future shocks.
The funding follows a £24 million investment in its Lincoln factory in 2021, as well as multimillion-pound investments into its southern region distribution centre in Leicester and the Skelmersdale and Coventry Walkers sites in recent years.
Jason Richards, PepsiCo UK and Ireland senior vice-president and general manager, said: "In 2023 we’re celebrating 75 years of Walkers crisps, so there’s no better time to renew our commitment to Leicester, a city and community that have been crucial to our success in the UK.
"As we look ahead to the next 75 years and future-proof our UK operations, this £58 million investment will transform our manufacturing site and installing state-of-the-art equipment will help us deliver on our ambitions on packaging and health.
"Alongside upgrades to meet increased demand for our snacks, we’re proud to be investing in creating better facilities for our people, who remain at the heart of bringing our most loved snacks to households across the country."