Giant snack company closes key distribution centers, lays of 100s

Shoppers at the grocery store often load their baskets with all kinds of snacks from one or more of the top producers who dominate the sector — Nestle, Pepsico, and Mondelez International.You can't miss Pepsico's products, which include Frito-Lay's Doritos, Cheetos, and Lay's potato chips, just to name a few. Frito-Lay's products are popular with consumers everywhere.But sales of snack foods have been declining, as Pepsico saw its fourth quarter of 2024 revenue decrease by 0.2% and its Frito-Lay brand's sales volume dropped by 3%, according to BakeryandSnacks.com.Consumers blame the decline on more selective purchasing from inflation and higher borrowing costs and consumer focus on health and wellness.The decline also has led to a downsizing of operations from snack manufacturers.J.M. Smucker declining salesAside from Pepsico, other major players like The JM Smucker Co., which purchased Hostess for $5.6 billion in 2023, have also seen declining sales in their Sweet Baked Snacks business, JustFood reported.J.M. Smucker reported third quarter results, through January 2026, were below its expectations as sweet snack sales declined. "In Sweet Baked Snacks, the path to stabilization is taking longer than we expected," J.M. Smucker CEO Mark Smucker said."Profitability is below our expectations and particularly in our third quarter," said Tucker Marshall, executive vice president of the Sweet Baked Snacks division.CandyWarehouse filed for bankruptcyAnother sweet snacks company faced distress and bankruptcy in 2025, as national candy distributor CandyWarehouse.com Inc. filed for Chapter 11 bankruptcy a week before Halloween on Oct. 24, 2025, to reorganize and restucture debt, facing a significant drop in its revenue earlier in the year. Bankruptcy was not an option for a huge snack company that faced declining revenue. Frito-Lay is closing several warehouse and distribution facilities across the nation. Pepsico closes Frito-Lay facility Giant snack food and beverage company Pepsico said it will close its Frito-Lay distribution facility in Rancho Cucamonga, Calif., as it seeks to balance its production with lagging demand, Food Dive reported.Pepsico's Frito-Lay division sent a Worker Adjustment and Retraining Notification notice to the California Employment Development Department and employees on Feb. 10, asserting that the company will permanently close the Rancho Cucamonga warehouse facility by June 6, 2026, and lay off 248 employees.More closings:Bankrupt restaurant chains permanently close popular locationsMajor retail chain closes 35 stores nationwide, no bankruptcyAnother major retail chain closes warehouse operationsThe company said it plans to move the facility's operations to a new distribution center in the community. Pepsico closed the Rancho Cucamonga plant's manufacturing operations in 2025. The huge beverage and snacks company has been closing manufacturing and distribution facilities across the nation since 2024.More facilities closePepsico closed its Orlando, Fla., manufacturing plant and onsite warehouse on Nov. 4, 2025, laying off 454 workers. It will also close an off-site warehouse in Orlando, which employs 46 staff members, by May 9, 2026.Frito-Lay also closed its Liberty, N.Y., PopCorners manufacturing plant on June 6, 2025, laying off 287 workers.Pepsico closed a Quaker Oats factory in Danville, Ill., and Pepsi bottling plants in Cincinnati, Atlanta, and Harrisburg, Pa., laying off about 300 employees in 2024.The New York-based company in December 2025 said its would slash prices and cut back on the number of products it sells in response to a reductio in consumer spending and pressure from an activist investor.Pepsico facilities closingDistribution center, Rancho Cucamonga, Calif., June 6, 2026Warehouse, Orlando, Fla., May 9, 2026Manufacturing plant, Liberty, N.Y., June 6, 2025Manufacturing plant and warehouse, Orlando, Fla., Nov. 4, 2024Quaker Oats factory, Danville, Ill., 2024Pepsi Bottling Plants, Cincinnati, Atlanta, Harrisburg, Pa., 2024Source: Food DiveRelated: Favorite U.S. wine brand closes down, no bankruptcy