The closure of Frito-Lay’s Rancho Cucamonga plant last week, a fixture in Southern California for more than half a century, is not just another business headline. It marks a major shift in the way Americans snack and where their dollars go. For Black business owners and Black communities, this is a moment for reflection on multiple levels.
The business of snacking is changing, and those changes could have outsized consequences for Black communities, which have long been both the target and the backbone of the snack industry.
For decades, snack companies like Frito-Lay, PepsiCo, Kellogg, Coca-Cola and Hershey have poured advertising dollars into Black and Hispanic communities, peddling candy, sugary drinks and salty snacks.
As recently as 2021, Black youth and adults were seeing 9% to 21% more food and beverage TV ads than their white peers, a study from the University of Connecticut found. Most of these ads promoted high-calorie, low-nutrient products. So this big change that’s coming for snacking presents a real paradox for our communities: As the manufacturing industry has declined in the U.S., Black folks have been able to find reliable sources of income from snack companies, but the products being pushed have contributed to higher rates of obesity, heart disease and diabetes.
That paradox is now colliding with a new reality. Americans are snacking less. There are lots of reasons — rising food prices, inflation, higher tariffs and a shift in consumer priorities toward necessities. And there’s a new foe for snack companies to compete with in the form of weight loss drugs like Ozempic, which can reduce cravings for salty and sweet snacks.
Snacking is taking a hit as consumer spending shifts away from “little treats” and toward essentials. Even Frito-Lay, a titan of the industry, couldn’t stop the rain. The company tried to adapt by increasing the size of snack bags and variety packs, but it wasn’t enough. Sales have tumbled this year and executives aren’t expecting things to turn around next year, according to the company’s latest earnings report.
Frito-Lay isn’t alone. J.M. Smucker, which not only sells the jelly that carries its name but also Hostess CupCakes, DingDongs, HoHos and Mini Muffins, reported a 14% decline in sales and a 72% decline in profits for its snack category. And Kellanova, which is known for products like Cheez-It, Pringles and Pop-Tarts, saw its sales decline during the latest quarter as well, with executives pointing to weak snack sales as a major culprit.
This shift has real implications for Black communities. The closure of the plant means job losses for hundreds of workers, many of whom are people of color. These jobs have long provided stable employment and economic opportunity in communities that often face higher unemployment rates.
There’s no doubt that the decline in snacking should be a positive development for public health, especially if it leads to a decline in unhealthy food consumption. We know that heart disease is the No.1 killer of Black folks in the U.S.
But the loss of jobs and economic activity is a real concern. Black business owners and community leaders need to be proactive in shaping the future of food in their neighborhoods.
This is a moment for Black entrepreneurs to rethink the food landscape.
As consumer tastes change, there is growing demand for healthier, locally sourced and culturally relevant snacks. Black business owners have an opportunity to fill this gap, creating products that reflect the tastes and values of their communities while also promoting better health by offering snacks made with whole grains, reduced sugar, plant-based ingredients and traditional African or Caribbean flavors that resonate with local consumers.
Community leaders, meanwhile, should advocate for policies that support local food entrepreneurs by pushing for dedicated grants, access to commercial kitchen spaces, technical assistance programs and streamlined permitting processes that make it easier for small businesses to launch and grow in Black communities. These efforts can help ensure that economic opportunities are not lost as the snack industry evolves.
The end of the Frito-Lay plant in Rancho Cucamonga is a symbol of change. It’s a reminder that no industry is immune to shifts in consumer behavior, and that Black communities — long targeted by snack companies — must be proactive in shaping the future of food. The business of snacking is changing. It’s time for Black business owners and communities to be ready for what comes next.
Dion Rabouin is The Wave’s new business and digital editor. Feel free to send suggestions and story ideas to Dion@wavepublication.com.
