PepsiCo to close California Frito-Lay plant

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PepsiCo is shuttering its Frito-Lay manufacturing facility in Rancho Cucamonga, California, marking the latest plant closure by a food giant amid a pullback in consumer spending.

The beverage and snack maker did not respond to questions regarding when the plant will close, why it’s closing, how many workers will be impacted, and what products the location currently produces. The 55-year-old facility reportedly employs about 480 people, according to Potatopro.com.

“We are committed to supporting those impacted through this transition and we are offering pay and benefits to impacted employees,” PepsiCo Foods U.S. said in a statement. The company added that its warehouse, distribution, fleet and transportation teams will continue to operate at its Rancho Cucamonga plant.

Frito-Lay currently operates more than 30 manufacturing plants across the U.S., the brand said on its website. 

As inflation and economic uncertainty prompt consumers to curtail their spending, several companies, including Post Holdings, Conagra Brands, Del Monte Foods and J.M. Smucker, have announced plans within the last year to close locations to bring production in line with demand. 

The plant closure in California is the latest from the PepsiCo subsidiary. In February, Frito-Lay said it would close a New York plant making PopCorners, which employed 287 people.

PepsiCo’s snacking business, which includes everything from Fritos and Doritos to Sun Chips and Funyuns, has been hit especially hard by the recent downturn. During its most recent earnings call, PepsiCo said revenue and product volumes fell 1% at its North American foods unit.

Jamie Caulfield, PepsiCo’s CFO, acknowledged Frito-Lay's “subdued performance” during a call with analysts in April. 

“We've got clear plans to continue to turn the business around, but that'll take a little while,” he said.