PepsiCo has announced the closure of its Frito-Lay manufacturing plant in Rancho Cucamonga, California, as part of a trend of plant closures in the food industry due to decreased consumer spending.
The company did not provide specific details on the closure, including the timeline, reasons, number of affected employees, or products manufactured at the facility. The Rancho Cucamonga plant, which has been operating for 55 years, currently employs around 480 workers, according to Potatopro.com.
PepsiCo Foods U.S. stated, “We are committed to supporting impacted employees with pay and benefits during this transition.” The company confirmed that its warehouse, distribution, fleet, and transportation operations at the Rancho Cucamonga site will continue.
Frito-Lay operates over 30 manufacturing plants across the United States, according to information on the brand’s website.
Several major companies, including Post Holdings, Conagra Brands, Del Monte Foods, and J.M. Smucker, have also announced plant closures in response to economic uncertainty and inflation affecting consumer spending.
This closure in California is the latest in a series of shutdowns by PepsiCo’s Frito-Lay division. Earlier this year, the company announced the closure of a New York plant producing PopCorners, affecting 287 employees.
PepsiCo’s snacking business, encompassing popular brands like Fritos and Doritos, has experienced a downturn, with a 1% decrease in revenue and product volumes reported in North America.
PepsiCo’s CFO, Jamie Caulfield, acknowledged Frito-Lay’s challenges during an earnings call with analysts, stating that efforts to improve performance are underway.