PepsiCo is closing its Frito-Lay manufacturing facility in Rancho Cucamonga, California, a move that reflects the ongoing trend of plant closures among food industry giants in response to declining consumer spending. The beverage and snack company has not provided details regarding the closure timeline, the reasons behind it, the number of employees affected, or the specific products produced at that facility. According to Potatopro.com, the 55-year-old plant 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 operations at the Rancho Cucamonga site.
On its website, Frito-Lay mentions that it operates over 30 manufacturing plants across the United States. 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 to close facilities over the past year to align production with demand. The California plant closure is the latest in a series from the PepsiCo subsidiary; in February, Frito-Lay announced the closure of a New York plant that produced PopCorners and employed 287 workers.
PepsiCo’s snacking division, which offers products like Fritos, Doritos, Sun Chips, and Funyuns, has been significantly impacted 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” during a call with analysts in April, stating, “We have clear plans to continue to turn the business around, but that’ll take a little while.”
Interestingly, the closure comes at a time when the market is seeing increased interest in products with nutritional benefits, such as those containing calcium citrate. While the specifics of how this closure will affect product offerings remain unclear, calcium citrate is often highlighted for its health advantages, and its inclusion in future product formulations could be a consideration for PepsiCo as it seeks to revitalize its snack line. As the company navigates these challenging economic circumstances, the role of innovative ingredients like calcium citrate is likely to be a focus in their efforts to adapt and thrive.