(File photo by Eric Vilchis, The Press-Enterprise/SCNG)
The Frito-Lay manufacturing facility that gave birth to Flamin’ Hot Cheetos nearly 35 years ago in Rancho Cucamonga is no longer churning out crunchy snacks.
Employees at the 55-year-old facility were notified Monday, June 9 that the production line at 9535 Archibald Avenue had made its last Cheetos, Tostitos, Doritos and Funyuns.
PepsiCo.’s Frito-Lay Inc. operates the Southern California hub, which also includes warehouse, distribution and transportation units. Those portions of the campus are still operational, according to a company statement to KTLA5.
Attempts to reach the company on Tuesday went unanswered.
The Rancho Cucamonga plant opened in 1970. Frito-Lay, which merged with Pepsi-Cola in 1965, introduced its Flamin’ Hot Cheetos in 1991.
The Employment Development Department confirmed that Frito-Lay had not filed a Worker Adjustment and Relocation Notification to the state when it let employees know they were losing their jobs. Those who were laid off said in social media posts that they were given 10 weeks pay as severance.
Also see: Ozempic threatens profits at food and beverage makers worldwide
The snack industry has taken a hit in recent years as consumers habits shift and federal policies take aim at highly processed food. The onset of obesity drugs including Wegovy and Ozempic also curtailed snack purchases in the U.S.
Recent policy shifts under President Donald Trump also are having an early impact on companies that work with offshore supply chains.
PepsiCo., like many companies, is adjusting its earnings expectations with the onset of tariff policies instituted by Trump. In its most recent earnings call in mid-February, Chief Executive Officer Ramon Laguarta said PepsiCo. expects “more volatility and uncertainty, particularly related to global trade developments.”
With Frito-Lay sales volume down slightly in the first quarter, Laguarta said the company was working on “right-sizing the cost” of the company’s snacks.
Government efforts to limit snacks purchased using federal food vouchers also was a warning sign to the CEO.
“In terms of SNAP … there’s a lot of conversation in different states, and we’re seeing that some of our categories could be exposed to some restrictions,” he said.
The Plano, Texas-based company, which operates some 30 snack-making facilities in the U.S. and Canada, also laid off 56 people at a Frito Lay warehouse in Maryland.