PepsiCo to Close Rancho Cucamonga Facility, Lay Off 248 Workers
PepsiCo will permanently close its Frito-Lay distribution facility in Rancho Cucamonga, California by June 6, 2026 and lay off 248 employees as snack unit sales volume fell 3% in Q4 2024. Peers JM Smucker and CandyWarehouse have reported sweet snack sales declines and bankruptcy, highlighting sectorwide pressure on Mondelez.
1. Frito-Lay Rancho Cucamonga Closure
PepsiCo's Frito-Lay division announced it will permanently close its distribution facility in Rancho Cucamonga, California by June 6, 2026, issuing a WARN notice on February 10 and planning to lay off 248 employees.
2. Snack Sales Volume Decline
Snack unit sales volume fell 3% in the fourth quarter of 2024, contributing to the decision to shrink capacity and balance production with softer demand for core chip brands.
3. Industry Peers Under Pressure
Peers JM Smucker and CandyWarehouse have posted sweet snack sales declines and filed for bankruptcy, reflecting a broader downturn in consumer snacking driven by inflation, higher interest rates and health trends.
4. Implications for Mondelez
The sectorwide downsizing and sales headwinds increase the risk of margin compression for Mondelez, which relies on similar distribution networks and faces the same shifts in consumer purchasing behavior.