PepsiCo, a leading beverage and snack maker, has announced the closure of its Frito-Lay manufacturing facility in Rancho Cucamonga, California. This decision comes as part of a trend among food giants to scale back operations due to a decrease in consumer spending.
The 55-year-old plant in Rancho Cucamonga currently employs approximately 480 workers, according to Potatopro.com. While PepsiCo has not disclosed specific details about the closure, the company has stated that it is committed to supporting affected employees through the transition by offering pay and benefits. The warehouse, distribution, fleet, and transportation teams at the facility will continue to operate despite the plant closure.
Frito-Lay, a subsidiary of PepsiCo, operates more than 30 manufacturing plants across the United States. The closure of the Rancho Cucamonga facility is the latest in a series of plant closures by major food companies like Post Holdings, Conagra Brands, Del Monte Foods, and J.M. Smucker in response to economic uncertainty and changing consumer behavior.
Earlier this year, Frito-Lay announced the closure of a plant in New York that produced PopCorners, affecting 287 employees. The company’s snacking business, which includes popular brands like Fritos, Doritos, and Sun Chips, has experienced a decline in revenue and product volumes. During the most recent earnings call, PepsiCo reported a 1% decrease in revenue at its North American foods unit.
Jamie Caulfield, PepsiCo’s CFO, acknowledged Frito-Lay’s challenges and emphasized the company’s commitment to turning the business around. Despite the subdued performance, PepsiCo remains optimistic about its future prospects but acknowledges that it will take time to implement and see the results of their turnaround plans.
