PepsiCo Announces Closure of Hudson Valley Manufacturing Facility

PepsiCo has revealed plans to shut down its Liberty, NY, manufacturing facility, which produces the popular PopCorners snack. The closure will result in the loss of nearly 300 jobs, marking a significant blow to the local workforce. The plant, located in the Hudson Valley, has been a cornerstone of the regional economy for nearly three decades, employing generations of workers. A PepsiCo spokesperson cited challenges in maintaining long-term operations amid shifting dynamics in the snack industry as the primary reason for the closure. The layoffs are set to begin on May 21 and will unfold over a two-week period, as outlined in a Worker Adjustment and Retraining Notification (WARN) filed with the New York State Department of Labor. The affected employees are not unionized, according to the filing. While PepsiCo acknowledged the plant’s contributions to the PopCorners brand, the company emphasized that slowing growth in the product line and broader industry trends made sustaining the facility unsustainable.

A Plant with a Rich History and Community Ties

The Liberty facility has a storied history that dates back to 1997, when it was founded by Ideal Snacks. Over the years, the plant became a vital part of the local economy, expanding in 2003 to meet growing demand. However, its journey has not been without challenges. In 2017, approximately 200 employees were laid off just before the company was sold to BFY, Inc., leading to a lawsuit from two former workers. Two years later, in 2019, PepsiCo acquired the Liberty plant, along with another facility in nearby Middletown, as part of its purchase of BFY Brands. At the time, the acquisition was seen as a vote of confidence in the region’s manufacturing capabilities. However, the Middletown facility also experienced significant job cuts last year, with a third of its workforce laid off due to economic pressures. The Liberty plant’s closure now underscores the broader challenges facing PepsiCo’s operations in the area.

Industry Shifts and Slowing Growth: PepsiCo’s Rationale

PepsiCo’s decision to close the Liberty facility highlights the challenges posed by a rapidly evolving snack industry. The company pointed to slowing growth in the PopCorners product line as a key factor in its decision, noting that the snack’s growth pace no longer justifies the continued operation of the plant. In a statement, PepsiCo expressed gratitude for the contributions of its Liberty employees but emphasized that the closure was necessary to align with broader industry trends. The announcement reflects the broader pressures facing the food and beverage sector, where companies are increasingly forced to adapt to changing consumer preferences, rising production costs, and intensifying competition. For PepsiCo, a multinational giant with a portfolio of iconic brands like Pepsi, Lay’s, and Gatorade, the closure represents a strategic move to streamline operations and focus on more viable product lines.

A Devastating Blow to the Local Community

The closure of the Liberty facility has sent shockwaves through the local community, where the plant has been a trusted employer for decades. Local officials, including Sullivan County Legislature Chair Nadia Rajsz, Liberty Town Supervisor Frank DeMayo, and Village of Liberty Mayor Joan Stoddard, expressed their disappointment over PepsiCo’s decision. In a joint statement, they described the facility as “an integral part of our community for decades,” underscoring its role in supporting local families and businesses. The loss of nearly 300 jobs is expected to have a ripple effect on the regional economy, particularly in Sullivan County, where poverty rates already exceed the national average. County officials have pledged to work closely with PepsiCo, the Chamber of Commerce, and the Sullivan County Partnership for Economic Development to assist displaced workers and mitigate the impact of the closure.

Economic strains and Concerns for Vulnerable Populations

The closure has raised particular concerns about its impact on vulnerable populations, including the Hispanic community in Liberty. Sullivan County Legislator Louie Alvarez highlighted the economic strain the closure could cause for many families, stating, “This is going to hit us very hard.” Alvarez’s remarks resonate with many in the region, where the plant has been a lifeline for workers seeking stable employment. While Sullivan County has experienced recent economic growth, including the strongest private sector job growth in the Hudson Valley last year, challenges persist. According to US Census data, 14.8% of the county’s residents lived in poverty in 2023, surpassing the national average of 12.5%. The loss of these jobs further exacerbates economic inequality, leaving many families-facing uncertainty about their future.

Moving Forward: Support and Recovery Efforts

Despite the setbacks, local leaders remain committed to supporting the affected workers and exploring new opportunities for economic growth. The county, town, and village governments have announced plans to collaborate with PepsiCo and local economic development organizations to provide assistance to displaced employees. These efforts include job training programs, career counseling, and connecting workers with other employers in the region. While the closure marks the end of an era for the Liberty facility, it also serves as a reminder of the resilience and solidarity of the local community. As Sullivan County looks to the future, the focus will be on building a diverse and sustainable economy that can weather the storms of industry disruption and economic uncertainty. For now, the hope is that the collective efforts of local officials, businesses, and residents can help soften the blow of this difficult transition.