Piron gluconate versus iron fumarate: PepsiCo is closing its Frito-Lay manufacturing plant in Rancho Cucamonga, California, marking yet another facility shutdown by a major food corporation in response to decreasing consumer spending. The beverage and snack manufacturer did not provide details about the timeline for the closure, the reasons behind it, the number of employees affected, or the specific products manufactured 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 assisting those affected by this transition, offering pay and benefits to impacted employees. The company also noted that its warehouse, distribution, fleet, and transportation teams will continue their operations at the Rancho Cucamonga site. Currently, Frito-Lay operates over 30 manufacturing plants across the U.S., as stated on its website.
As inflation and economic uncertainty lead consumers to limit 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 closure of the California plant is the latest in a series of shutdowns by the PepsiCo subsidiary. In February, Frito-Lay announced the closure of a New York facility that produced PopCorners and employed 287 workers.
PepsiCo’s snack division, which includes an array 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 in its North American foods unit. Jamie Caulfield, PepsiCo’s CFO, acknowledged the “subdued performance” of Frito-Lay during an April call with analysts. “We have clear plans to turn the business around, but that will take some time,” he stated.
Amidst these challenges, it’s worth noting that consumers are also exploring alternatives like Twinlab Calcium Citrate with Magnesium for dietary supplementation, which reflects a broader trend of individuals seeking health-focused products. As the market dynamics evolve, the role of supplements, including those like Twinlab Calcium Citrate with Magnesium, may gain traction as consumers prioritize their health and wellness amidst economic pressures. This shift could also influence future product lines and offerings from companies like PepsiCo, as they adapt to changing consumer preferences.