PepsiCo is shutting a bottling plant in the US state of Tennessee, impacting more than 100 jobs.
According to a WARN filing, 112 workers are being laid off across manufacturing, maintenance and warehouse operations at the site in Knoxville.
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Staff were notified of the decision on Monday (19 October).
In the filing, PepsiCo said it is working to reassign workers to “nearby facilities”.
Just Drinks asked PepsiCo to comment on the reasons for the closure. The company pointed this publication to a brief statement that said the move had been a “difficult decision”.
The closure comes as the US drinks giant faces margin pressure on margins at its North America beverages business.
Marketing investment and muted underlying sales triggered a 15-basis-point drop in the unit’s core operating margin during the third quarter, PepsiCo said earlier this month.
In the 12 weeks to 5 September, divisional net revenue climbed 5%, boosted by prior-year acquisitions.
However, organic revenue slipped “slightly”, PepsiCo said. The company pointed to a sequential improvement in “organic volume trends”.
The Mountain Dew brand owner has cut its 2026 earnings projection, now expecting core earnings per share to grow 1% to 2%, down from its previous forecast of “low end” of the 4% to 6% range.
Meanwhile, it emerged last week that rival Coca-Cola has won the drinks contract to supply drinks to US-based KFC restaurants, ending PepsiCo’s 40-year tie-up with the chain.
