Pepsi-Cola Products Philippines Inc. (PCPPI) has obtained approval from its board of directors to cease the production of Cheetos snacks in the Philippines. Employees of the snack plant in Cabuyao, Laguna will be transitioned to new roles within PCPPI as the snack production line will be shut down.
PCPPI will seek negotiation with PepsiCo on the plan. The closure of the snack plant will enable PCPPI to focus on its core competency, which is the manufacturing of beverages.
PCPPI will continue to sell Cheetos but the products will be imported as with other brands like Lay’s, Doritos and Ruffles.
The closure of the plant will have immaterial impact on the company as snack accounts for less than 1% of PCPPI revenue and segment results for the first six months of 2018 and first six months of 2019.
