Three major food and beverage firms have announced a series of plant closures across the United States, citing a set of performance metrics that guided each decision. PepsiCo, Nestlé and Campbell’s together disclosed five shutdowns in the last two months, affecting more than 350 workers.
Recent closures shake regional production
On October 19, PepsiCo Beverages U.S. said it would close its bottling plant in Knoxville, Tennessee, with a WARN notice listing 112 employees. Workers will retain pay and benefits through a notice period ending January 1, 2027, after which the site will cease operations.
Knoxville’s customers will continue to receive products, but the supply will be rerouted from other facilities in PepsiCo’s network. This marks the second bottling plant the company has shuttered within five weeks; a September announcement ended manufacturing at its Cheverly, Maryland, plant, eliminating 143 jobs.
In a statement, a PepsiCo spokesperson said the company “must continue optimizing and modernizing our network to best serve customers and consumers.” The comment indicates a broader trend: food producers reported 29,693 job cuts through September, a 76% rise from the same period in 2025.
Industry data also show a 1.5% decline in output of food, beverage and tobacco products from September 2025 to September 2026. When overall production falls, executives reassess which sites remain essential.
Nestlé confirmed the closure of its Solon, Ohio, factory by the end of 2027, with pouch production shifting to its Gaffney, South Carolina, plant. The company said the move aligns with “shifting customer needs and volumes” and leverages existing capabilities elsewhere in the network.
Meanwhile, Campbell’s announced the shutdown of two snack facilities in Hyannis, Massachusetts, and Jeffersonville, Indiana. The company cut its salaried workforce by roughly 13% as part of a cost-reduction program targeting $500 million in savings by fiscal 2030. Snacks net sales fell 12% in the fourth quarter, or 6% on an organic basis.
Four metrics shaping the shutdown calculus
Although the three firms did not publish detailed formulas, their public statements point to four key figures: delivered cost per case, weekly changeover capacity, exclusive network volume, and required capital investment.
Delivered cost per case includes labor, materials, overhead and outbound freight. Campbell’s highlighted “double-digit logistics inflation” driven by higher diesel costs and driver shortages, emphasizing that a slower plant farther from major customers can be at a disadvantage.
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Changeover capacity measures how many product switches a line can handle each week without overtime. PepsiCo linked the Cheverly closure to evolving consumer demand and technology, noting that flexibility is essential for new SKU introductions.
Exclusive network volume reflects the share of SKUs that only a single site can produce. Nestlé moved Solon’s work because Gaffney already possessed the necessary equipment, illustrating the protective value of unique capabilities.
Capital requirements consider deferred maintenance, line upgrades and compliance projects needed to keep a plant competitive. Past spending carries little weight; decision-makers assess future costs needed to maintain performance.
Compared with past consolidation waves in the industry, these metrics provide a more data-driven lens, allowing sites to pinpoint weaknesses before a network review. Plants that can demonstrate low case cost, high flexibility, unique SKU coverage and modest capital needs are better positioned to stay open.
Companies are urging plant managers to assemble quarterly cost-per-case spreadsheets, track actual changeovers, and map SKU exclusivity across the network. Finance teams are often tasked with maintaining these metrics, sometimes using AI tools to reconcile data from ERP, MES and carrier invoices.
One practical step is to identify the single most vulnerable metric and develop a 90-day improvement plan. By focusing resources on that area, a site can present a stronger case when corporate reviews begin.
When a company consolidates its footprint, the displaced output typically flows to plants that already demonstrate strong case economics and flexible line configurations.
Practical actions for plants facing review
Facilities can begin by dissecting their cost structure line-by-line, separating labor, material and freight components for each major customer. This granular view helps identify where a plant’s case cost deviates from network averages.