PepsiCo to close its processing plant due to a low pace of growth

USA – PepsiCo, an American multinational food, snack, and beverage corporation, has announced plans to close PopCorners brand, its snacks plant in New York, with more than 200 employees expected to lose their jobs.

According to a Worker Adjustment and Retaining Notification filed with the state Department of Labor, PepsiCo’s layoffs will occur over 14 days starting May 21. The notice states that the affected employees are not unionised.

The company’s statement read, “This plant has played a vital role in producing our beloved PopCorners brand, but the pace of growth for this product line, paired with the broader industry pace of growth, has made it difficult to sustain the site’s long-term viability.”

It also stated that it deeply appreciated the contributions of its Liberty employees and emphasized that the decision did not diminish the value of their hard work and dedication.

It mentioned that it had notified its workforce and was working closely with its employees and local community officials to ensure a supportive transition.

The local authority in Sullivan County, where the Liberty facility is located, also stated the closure, “We are deeply concerned about PepsiCo’s decision to shutter their Liberty food manufacturing facility, which has been an integral part of our community for decades and employs hundreds of locals. This action will have many impacts, which we intend to sort out with PepsiCo’s assistance in the coming weeks.”

They stated that together with  the Town of Liberty, the Village of Liberty, and their partners, including the Chamber of Commerce and the Partnership for Economic Development, they would assist the impacted workers in every possible way.

This support would include providing necessary services to individuals and families and offering the full support of their Center for Workforce Development to help residents remain employed locally.

PepsiCo Inc. to focus on value

The closure came after the company recently announced that it would focus more on catering to consumers looking for value and boosting its better-for-you options to stoke growth in its snacks business.

PepsiCo highlighted efforts to increase sales of healthier snacks, like Simply, which has no artificial colours or flavours, and high-protein items, such as Quaker.

PepsiCo’s CEO Ramon Laguarta told analysts, “Value is the number one decision maker, and the reason why the snacking category has slowed during the last year. PepsiCo will offer additional multi-count packages in smaller counts with lower price points that consumers can purchase depending on their budgets.”

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