PepsiCo to Close Frito-Lay Plant in Rancho Cucamonga, California
Amid a decline in consumer spending, PepsiCo has announced the closure of its Frito-Lay manufacturing facility in Rancho Cucamonga, California. This decision comes as part of a trend in the food industry, with several companies scaling back production in response to economic uncertainty.
The specifics of the plant closure, including the timeline, reasons behind the decision, the number of employees affected, and the products currently manufactured at the facility, have not been disclosed by PepsiCo. The Rancho Cucamonga plant, which has been in operation for 55 years and employs approximately 480 people, will cease its operations.
Despite the closure of the manufacturing facility, PepsiCo Foods U.S. has expressed its commitment to supporting the impacted employees through the transition, offering them pay and benefits during this challenging time. The company has stated that its warehouse, distribution, fleet, and transportation teams will continue to operate at the Rancho Cucamonga location.
With more than 30 manufacturing plants across the U.S., Frito-Lay is a prominent brand in the snack industry. However, the recent downturn in consumer spending has impacted the company’s revenue and product volumes, leading to the closure of several production facilities.
Other major food companies, including Post Holdings, Conagra Brands, Del Monte Foods, and J.M. Smucker, have also announced plant closures in response to changing market conditions. In February, Frito-Lay revealed plans to shut down a New York plant that produced PopCorners, affecting 287 employees.
During a recent earnings call, Jamie Caulfield, PepsiCo’s CFO, acknowledged the challenges faced by Frito-Lay’s snacking business, noting a 1% decrease in revenue and product volumes at the North American foods unit. Despite these setbacks, PepsiCo remains optimistic about turning the business around in the future.