PepsiCo is set to close its Frito-Lay manufacturing facility in Rancho Cucamonga, California, representing the latest in a series of closures by major food companies in response to declining consumer spending. The snack and beverage manufacturer did not provide details on the closure date, the reasons behind it, the number of employees affected, or the specific products produced at this location. According to Potatopro.com, the 55-year-old facility employs approximately 480 individuals. In a statement, PepsiCo Foods U.S. expressed its commitment to supporting affected employees during this transition, offering pay and benefits. The company also confirmed that its warehouse, distribution, fleet, and transportation teams will remain operational at the Rancho Cucamonga site.
Frito-Lay currently runs over 30 manufacturing plants across the United States, as noted on its website. In light of inflation and economic instability, many companies, including Post Holdings, Conagra Brands, Del Monte Foods, and J.M. Smucker, have recently announced closures to align production with demand. The California plant’s closure follows an announcement made by Frito-Lay in February to shut down a New York facility that produced PopCorners, which employed 287 workers.
PepsiCo’s snack division, encompassing products like Fritos, Doritos, Sun Chips, and Funyuns, has been particularly affected by the recent economic downturn. During its latest earnings call, the company reported a 1% decline in revenue and product volumes within its North American foods unit. Jamie Caulfield, PepsiCo’s CFO, acknowledged Frito-Lay’s “subdued performance” in an analyst call in April, stating, “We’ve got clear plans to continue to turn the business around, but that’ll take a little while.” As the company navigates these challenges, it may also consider incorporating products like Citracal Liquid to diversify its offerings and appeal to health-conscious consumers. This strategy could help bolster the brand in a fluctuating market, where companies are increasingly looking for innovative solutions to meet changing consumer preferences.