PepsiCo and Coca-Cola have spent decades competing for consumers, but their latest moves in the U.S. beverage market are taking notably different paths.
One is reworking its operating network in response to changing consumer demand and looking for greater efficiency. The other is preparing to invest billions of dollars in its U.S. infrastructure over the next several years.
The moves highlight two different approaches to navigating a changing beverage market, where companies are balancing consumer demand, operating costs, and long-term investment.
PepsiCo is shutting down a bottling plant
PepsiCo (PEP) is ending manufacturing and warehouse operations at a bottling facility in Cheverly, Maryland, after more than six decades of operations, according to a WARN notice filed with the Maryland Department of Labor on Sept. 14, 2026.
The notice lists 143 affected employees, including 98 represented by a union, and an effective date of Nov. 13, 2026. The impacted positions include fleet, transportation, manufacturing, and warehouse operations.
PepsiCo attributed the decision to changes in consumer demand, technology, and its operating network.
“This decision was not made lightly,” a PepsiCo spokesperson said in a statement reported by FoodDive. “We must continue optimizing and modernizing our network to best serve customers and consumers.”
The closure does not mean all operations at the Cheverly location will stop. Sales and delivery activities will continue even as manufacturing and warehouse operations are discontinued.
Why PepsiCo is closing the bottling plant
PepsiCo’s explanation centers on changes to its network, consumer demand, and technology.
Local officials have also pointed to issues with the aging facility. Prince George’s County Councilmember Jolene Ivey told NBC Washington that the building had experienced power outages and other issues, making facility maintenance increasingly costly.
The closure is also significant for Cheverly because the facility has been the town’s largest revenue generator. Town officials said the workforce reduction would have a substantial effect on employees and the broader community.
The Maryland plant is not the only PepsiCo facility affected by recent network changes.
- Orlando, Florida: PepsiCo’s Frito-Lay business closed two manufacturing facilities, affecting 500 employees, with operations ending May 9, 2026, according to a WARN notice and my previous reporting.
- Rancho Cucamonga, California: A Frito-Lay distribution plant ceased operations on June 6, impacting 248 workers, according to a WARN notice
- Detroit, Michigan: PepsiCo partially closed a manufacturing facility in September 2025, halting production, maintenance, and transportation operations, and affecting 83 workers, according to my previous reporting.
- Liberty, New York: A Frito-Lay facility closed in June 2025, impacting 287 employees, according to local reports.
- Ohio, Pennsylvania, Illinois, and Georgia: PepsiCo closed four bottling plants in 2024, resulting in more than 400 layoffs, according to local reports.
The recent closures come as PepsiCo continues to emphasize productivity and changes to its North American operating network.
PepsiCo works to improve its North American business
The plant closure comes as PepsiCo works to improve the performance of its North American businesses.
In the second quarter of fiscal 2026, PepsiCo reported $24.18 billion in net revenue, up 6.4% from the prior year.
Overall operating profit increased 125% to $4.02 billion, although the comparison was affected by a large impairment charge recorded in the prior-year period.
The performance varied considerably across PepsiCo’s North American food and beverage businesses.
For PepsiCo Foods North America, net revenue declined 2%. Unit volume was flat while operating profit fell 3.5%.
The company said the decline in operating profit reflected increases in certain operating costs and unfavorable net pricing. Productivity savings and lower restructuring charges partially offset those pressures.
PepsiCo Beverages North America, meanwhile, reported a 7% increase in net revenue. However, unit volume declined 4%.
PepsiCo has said it intends to continue improving productivity and investing in growth across the business.
“We have more work to do here,” said PepsiCo CFO Stephen Schmitt during the company’s latest earnings call.
The company has also been combining certain mixing centers and consolidating inventory to reduce costs. PepsiCo CEO Ramon Laguarta said the company was testing additional changes, including combined delivery and fleet operations.
“Those are big transformations,” said Laguarta. “And it requires systems, requires assets, but all of this is in motion and with positive returns so far.”
The changes are part of PepsiCo’s broader effort to improve operating efficiency while continuing to invest in its brands and products.
Coca-Cola is taking a different approach
While PepsiCo is reducing manufacturing and warehouse capacity at the Cheverly site, Coca-Cola has announced plans for a major expansion of its U.S. infrastructure.
Coca-Cola said it and its bottling partners plan to invest $10 billion in U.S. infrastructure by 2030. The investment will include new and expanded production, distribution, and office facilities.
The $10 billion figure is a system-wide investment, meaning it includes spending by Coca-Cola’s bottling partners rather than representing Coca-Cola’s own capital expenditures alone, according to Coca-Cola CFO John Murphy.
Projects associated with the investment have been announced in Rancho Cucamonga, California; Colorado Springs, Colorado; Indianapolis, Indiana; Birmingham, Alabama; Coopersville, Michigan; St. Cloud, Minnesota; Orlando, Florida; and Webster, New York.
Coca-Cola said the investments are intended to help meet consumer demand and expand the production and distribution infrastructure supporting its U.S. business.
The company also cited an independent study that estimated the Coca-Cola system contributed $85 billion to the U.S. gross domestic product and supported nearly 1 million jobs in 2025.
Here’s some of my previous coverage of closures:
- Convenience store giant closes 80 stores
- Convenience store giant sells stores, exits market
- Grocery chain closes its only store in town, leaving locals behind
The two companies’ announcements reflect different changes to their U.S. networks. PepsiCo is consolidating certain operations while focusing on productivity, whereas Coca-Cola and its bottling partners are planning additional infrastructure investment through 2030.
Neither development represents a complete picture of either company’s U.S. strategy. PepsiCo continues to invest in its North American businesses while restructuring parts of its network, and Coca-Cola’s $10 billion includes projects announced before the latest investment plan.
