PepsiCo’s snack division Frito-Lay to invest US$245m in expansion of US manufacturing site

US – PepsiCo’s snack division Frito-Lay, has announced plan to invest US$245 million to expand its snack manufacturing site in Connecticut, US.

The Frito-Lay’s Killingly site where the expansion will take place began operations in 1980 with 200 employees, but it currently employs approximately 740 full-time associates.

Expansion works include plans to expand its existing manufacturing facility and warehouse, as well as add two new Cheetos manufacturing lines.

An additional 120 new jobs are expected by the expansion which will also mark the first time that the Cheetos brand will be manufactured by the company in the state.

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 The expansion project – which will take place at Frito-Lay’s Killingly site – is expected to begin in spring 2022 and anticipated to be complete by the second quarter of 2024,

“We have been a proud member of the Killingly community for more than 40 years and look forward to expanding our footprint and bringing more jobs,” said Laura Maxwell, senior VP of supply chain, PepsiCo Foods North America division.

“It’s only with the support of the teams at the local and state level that this project has been able to come to fruition. They are helping enable growth in this community which ultimately supports Frito-Lay’s goals, as well.”

The project comes after Frito-Lay announced a US$200 million expansion of its snack manufacturing operations in Perry, Georgia.

Governor of Connecticut, Ned Lamont, said: “As we emerge from this pandemic, we are seeing Connecticut companies of all sizes increase their workforce and expand operations. What is particularly significant is the fact that much of this growth is coming from companies like Frito-Lay that already have a presence here and know first-hand the benefits of doing business – and investing – in Connecticut.”

The state’s strategic venture capital arm, Connecticut Innovation, will has pledged provide up to US$5.5 million to support the project.

Investment amid rising concerns about health

Frito-lay’s investment is coming at a time when there is rising health concerns along with changing lifestyles and diets that do not favour growth of the snack market, at least in the long term.

According to a survey by Grand Review Research, consumers across the globe are extra cautious about their snacking routines and are shifting toward healthy alternatives such as fruits, vegetables, and granola bars because of the added benefits offered by them related to metabolism.

Despite the changing consumer behaviour, Grand Reviewe Research projects that the global snacks market size which was valued at US$439.9 billion in 2018 is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2019 to 2025.

Opportunities in the sector are however greatest in the healthy snacking sector because of need to tame widespread prevalence of obesity in developed countries such as the U.S. and UK which are also the largest snack markets in the globe.

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