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PepsiCo plans to close a Frito-Lay distribution plant in California as it aims to ramp up production to meet lagging demand. This is the snack giant’s latest closure.
The Rancho Cucamonga facility is scheduled to cease operations June 6. PepsiCo said in a WARN notice filed with the state of California: As a result of this measure, 248 people will be laid off.
PepsiCo ended its manufacturing operations this year. Rancho Cucamonga Plant, 2025However, it said at the time that it would continue to operate distribution and warehouse operations at that location.
In a statement to Food Dive, the company said it now “plans to transition these operations to a new distribution center in the community to better serve our customers and consumers.”
PepsiCo closed several plants across its network last year, including snack facilities. Florida and New York.
Frito-Lay’s portfolio has seen demand decline as inflation forces consumers to spend less. The snack giant has also taken a hit as shoppers turn away from processed foods to healthier products with notable ingredient lists.
Most recent earnings reportPepsiCo said both North American food segment sales and organic sales declined 2% in fiscal 2025.
PepsiCo is moving aggressively to reposition its portfolio to fuel the company’s growth and make its products more attractive to consumers.
In December, the New York-based company said: They were lowering the price Reduce the number of products you sell This is a response to a slowdown in consumer spending and pressure from activist investors.
PepsiCo has also doubled down on launching healthier versions of some of its snacks. announced last year Cheetos and Doritos We’re working to provide more snack options by adding protein, fiber, and whole grains without artificial dyes.
