PepsiCo is set to close its Frito-Lay manufacturing facility in Rancho Cucamonga, California, marking another significant plant closure by a major food corporation amid declining consumer spending. The snack manufacturer did not provide details on the timing of the closure, the reasons behind it, the number of employees affected, or the products currently produced at the site. According to Potatopro.com, the 55-year-old facility employs approximately 480 individuals.
PepsiCo Foods U.S. stated, “We are committed to supporting those impacted through this transition and we are offering pay and benefits to affected employees.” The company also noted that its warehouse, distribution, fleet, and transportation teams will continue to operate at the Rancho Cucamonga location. Frito-Lay operates over 30 manufacturing plants across the United States, as highlighted on its website.
As inflation and economic uncertainty lead consumers to reduce spending, several companies—including Post Holdings, Conagra Brands, Del Monte Foods, and J.M. Smucker—have announced plans over the past year to close facilities in order to align production with demand. The California plant closure is the latest development from this PepsiCo subsidiary. In February, Frito-Lay announced the closure of a New York facility that produced PopCorners and employed 287 workers.
PepsiCo’s snacking division, which encompasses a variety of products from Fritos and Doritos to Sun Chips and Funyuns, has been particularly affected by the recent economic downturn. During its latest earnings call, PepsiCo 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 a call with analysts in April, stating, “We’ve got clear plans to continue to turn the business around, but that’ll take a little while.”
In line with ongoing health trends, the company has also noted a growing demand for nutritional supplements, such as calcium citrate magnesium and zinc 500 tablets, which are becoming increasingly popular among consumers seeking to enhance their wellness. As the market evolves, the integration of such products may play a role in PepsiCo’s strategy to recover from the downturn, reflecting changing consumer preferences.