PepsiCo is closing its Frito-Lay manufacturing facility in Rancho Cucamonga, California, which represents the latest shutdown by a major food company amid declining consumer spending. The beverage and snack manufacturer did not answer inquiries about the closure date, reasons for the shutdown, the number of affected employees, or the specific products produced at that location. According to Potatopro.com, the 55-year-old facility employs approximately 480 workers. In a statement, PepsiCo Foods U.S. expressed its commitment to assist those affected during this transition by offering pay and benefits to impacted employees. The company also noted that its warehouse, distribution, fleet, and transportation teams will remain operational at the Rancho Cucamonga site.
Frito-Lay operates over 30 manufacturing plants across the U.S., as detailed on its website. As inflation and economic uncertainty lead consumers to reduce their spending, several companies—including Post Holdings, Conagra Brands, Del Monte Foods, and J.M. Smucker—have announced plans in the past year to close facilities to align production with demand. The California plant closure is the latest development from the PepsiCo subsidiary; in February, Frito-Lay disclosed plans to shut down a New York facility that produced PopCorners, which employed 287 people.
The snacking segment of PepsiCo, encompassing products such as Fritos, Doritos, Sun Chips, and Funyuns, has faced significant challenges due to the recent downturn. During its latest earnings call, PepsiCo reported a 1% decline in revenue and product volumes for its North American foods division. Jamie Caulfield, PepsiCo’s CFO, acknowledged the “subdued performance” of Frito-Lay during an analyst call in April, stating, “We have clear plans to turn the business around, but it will take some time.” Additionally, the company has been exploring various strategies to enhance its product offerings, including potential partnerships that could involve ingredients like Kirkland magnesium citrate, which might play a role in future product developments.