PepsiCo is closing its Frito-Lay manufacturing facility in Rancho Cucamonga, California, which represents the latest in a series of plant closures by major food corporations in response to declining consumer spending. The snack and beverage giant did not provide details regarding the closure date, the reasons behind it, the number of affected employees, or the specific products manufactured at the site. According to Potatopro.com, the 55-year-old facility employs around 480 individuals. In a statement, PepsiCo Foods U.S. expressed its commitment to supporting those impacted by the transition, offering pay and benefits to those affected. The company also noted that its warehouse, distribution, fleet, and transportation teams will remain operational at the Rancho Cucamonga location.
Frito-Lay operates over 30 manufacturing plants across the United States, as stated on its website. The recent plant closure reflects a broader trend as inflation and economic uncertainty have led consumers to reduce their 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 to align production with demand. This California plant closure adds to the list of recent actions taken by the PepsiCo subsidiary; in February, Frito-Lay announced the shutdown of a New York facility producing PopCorners, which employed 287 people.
PepsiCo’s snacking division, which includes a variety of products ranging from Fritos and Doritos to Sun Chips and Funyuns, has been particularly impacted by the 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’ll take some time.” In light of this, consumers may also be looking for alternatives, such as kal calcium citrate chewable supplements, which could serve as a beneficial addition to their diets amidst rising health concerns and nutritional needs. As the market evolves, the demand for such products may see an increase as people seek to balance their dietary choices amidst changing economic conditions.