California has had a rough 2025, no doubt about it.
With strings of factory closures roiling the state economy…
And even whole industries shutting down…
California definitely needs some good news.
Unfortunately, the Golden State’s food and beverage sector is unfortunately looking likely to experience even tougher sledding, with two recent major plant closures resulting in the loss of over 500 more jobs.
Manna Beverages – West Sacramento
Manna Beverages abruptly ceased operations at its West Sacramento facility earlier this month, terminating approximately 377 employees with minimal warning. The company cited struggling business performance and mounting debt as primary reasons for the closures, following the withdrawal of potential investors. Manna Beverages produces juice, tea, and fizzy drinks for several recognized national brands, so this is another sign that the economic impacts
Pactiv Evergreen – Bakersfield
In August, Pactiv Evergreen announced the permanent closure of its food and beverage packaging plant in Bakersfield, affecting 127 employees. The decision was influenced by California’s ban on foam packaging, which impacted the plant’s operations. The closure underscores the broader challenges faced by the packaging industry in adapting to evolving environmental regulations.
And also, more broadly, how companies are responding to falling international and domestic demand. International demand has cratered thanks to the combination of retaliatory tariffs from foreign governments and even outright boycotts in many markets. Companies are responding to that by cutting costs where they can – especially from contract manufacturers like Manna Beverages, and packaging companies like Pactiv. And then, like dominoes falling, those companies then have to cut their own expenses and production.
Unfortunately, this creates the conditions for a destructive economic cycle that feeds on itself. As consumer demand slips, companies respond by trimming production schedules and laying off workers to protect their bottom line. Those job cuts then erode confidence, prompting Americans to reduce their spending even further. With weaker sales, businesses are forced to tighten operations once again. This loop, left unchecked, risks spreading job insecurity and hardship to even more hardworking Americans who simply want stability and opportunity.
The food and beverage industries have been surviving for years under difficult conditions – labor shortages, inflation, complex supply chains, and of course changing consumer tastes – being just a few of the big challenges. Add in 2025’s unique and urgent difficulties, and it’s no wonder that factories are closing down across the country.
And unfortunately – the pain could just be starting.
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