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PepsiCo is closing three more bottling plants, bringing with it the loss of more than 300 jobs as the beverage giant rationalizes its manufacturing network.
The company said it has halted production in Cincinnati. Harrisburg, Pennsylvania; And Atlanta. The closures will result in 136 people losing their jobs in Cincinnati, 127 in Harrisburg and less than 50 in Atlanta. PepsiCo said each location will continue to operate its warehouses.
The closure of these locations comes just three days after PepsiCo abruptly closed its last plant in the city of Chicago, which employed 131 people.
“We are investing in a more agile and optimized manufacturing network to best meet dynamic consumer demands,” PepsiCo said in a statement to Food Dive. “As a result, we have suspended production operations in four regions.”
PepsiCo this month lowered its sales forecast for the year as rising prices prompted consumers to buy fewer beverages and snacks to save money. The New York-based company said beverage production in North America will decline 3.5% so far in 2024.
PepsiCo is the latest company to announce plant closures as companies seek to increase the efficiency of their production networks and match supply to demand. Companies that have announced plant closures include Wonder Bread maker Flowers Foods, canned fruit and vegetable giant Del Monte Foods and Slim Jim maker Conagra Brands. These are just some of them.
In some cases, companies may close some facilities and open others.
PepsiCo is building a 1.2 million-square-foot manufacturing facility in Colorado that will make it its largest plant in the United States. The facility is reportedly behind schedule. Earlier this year, PepsiCo announced it was permanently closing its Quaker Oats plant in Danville, Illinois, which was temporarily closed after product was recalled due to salmonella contamination.
Campbell Soup also said in May that it would close one plant and downsize a second facility. The soup and snack maker also announced it will invest $230 million in newer, more efficient plants by fiscal 2026, with the goal of improving its supply chain competitiveness.
