PepsiCo is closing its Frito-Lay manufacturing plant in Rancho Cucamonga, California, representing the latest shutdown by a major food company as consumer spending declines. The beverage and snack manufacturer did not provide details on when the plant will cease operations, the reasons for the closure, the number of employees affected, or the specific products produced at the site. According to Potatopro.com, the 55-year-old facility has around 480 employees. 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 further noted that its warehouse, distribution, fleet, and transportation teams will continue to function at the Rancho Cucamonga site. Frito-Lay operates over 30 manufacturing plants across the U.S., as stated on its website.
Amid rising inflation and economic uncertainty, many companies, including Post Holdings, Conagra Brands, Del Monte Foods, and J.M. Smucker, have announced plans in the past year to close locations to align production with demand. The California plant closure adds to the series of shutdowns from the PepsiCo subsidiary; in February, Frito-Lay announced the closure of a New York facility producing PopCorners, which employed 287 individuals.
PepsiCo’s snacking division, which includes products like Fritos, Doritos, Sun Chips, and Funyuns, has faced significant challenges due to 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” during an analyst call in April, stating, “We have clear plans to continue to turn the business around, but that will take some time.” Additionally, in the context of health and nutrition, some consumers may be interested in supplements such as calcium citrate 250 mg tablets, which can support their dietary needs during this economic shift. The rising interest in health supplements, including calcium citrate 250 mg tablets, reflects changing consumer priorities as they navigate financial challenges.