PepsiCo is the second-largest food company in the world and one of the most lucrative due to its popular food, snack, and beverage brands, which are consumed in over 200 countries and territories.
Although PepsiCo’s brands, including Lay’s, Gatorade, PopCorners, Quaker Oats, and Pepsi, have become household names, the company was not immune to the effects of increasing competition and ever-evolving consumer trends.
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According to PepsiCo’s fourth-quarter earnings report for 2024, net revenues fell 0.2% compared to the same period last year.Â
Its North American market is especially experiencing some of the worst times, with Frito-Lay North America revenues down 2%, Quaker Foods North America declining 2%, and PepsiCo Beverages remaining flat compared to the year prior.
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These continuous concerning declines have caused PepsiCo to take extreme measures over the last few months to reduce costs and make ends meet.
Last year, PepsiCo closed its Quaker Oats factory in Danville, Illinois, laying off 131 workers and four bottling plants in Cincinnati, Harrisburg, Pennsylvania, and Atlanta, cutting nearly 400 jobs.Â
With 2025 just beginning, it didn’t take long for the company to target yet another plant to kick off the year.
Frito-Lay potato chips are displayed for sale inside a Kroger Co. grocery store.
PepsiCo acquires PopCorners to grow its healthier snack portfolio amid declines
Over the last few years, PepsiCo (PEP)  has emphasized the growing consumer demand for healthier snacks in the U.S. This has prompted the company to make multiple investments that better align with this trend.
In 2019, PepsiCo sealed a deal with BFY Brands to acquire the corn-based snack brand PopCorners to expand its healthier snack portfolio. As part of the agreement, the company also gained ownership of its manufacturing plant in Liberty, New York.
However, its investments and strategies hasn’t been as fruitful as expected.
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As reported in its latest earnings, Frito-Lay North America’s operating profit decreased 11% in the fourth quarter and 7% for the full year of 2024. PepsiCo attributes the sharp declines to operating cost increases, including strategic initiatives, decreased organic volume, and a 5-percentage-point impact of higher restructuring charges.
However, nearly six years after acquiring the Liberty plant, PepsiCo made an unexpected decision as it has struggled with continuous sales slowdowns over the last few quarters.Â
PepsiCo announces the closure of another manufacturing plant and multiple layoffs
PepsiCo filed a Worker Adjustment and Retraining Notification (WARN) with the New York Department of Labor stating that it would close its Frito-Lay manufacturing plant in Liberty, New York, before the end of Spring this year, leaving 287 employees without a job.
As stated in the filing, the company listed economic troubles as the reason for the permanent shutdown of the facility. It set a beginning closure date of May 21 and an ending date of June 6.
“This plant has played a vital role in producing our beloved PopCorners brand, but the pace of growth for this product line paired with broader industry pace of growth has made it difficult to sustain the site’s long-term viability,” said PepsiCo in a statement. “We deeply appreciate the contributions of our Liberty employees, and this decision does not diminish the value of their hard work and dedication.”
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Regarding the future of its snack and beverage business, PepsiCo stated during its latest earning call that it has decided to split the beverage and snack business in its international market. As for North America, it will focus on efficiency instead because it sees more growth opportunities.Â
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