NEW YORK -- Convenience stores and other retailers in New York are experiencing a scarcity of Frito-Lay products as distributors deal with a shortage of truck drivers, sparked by PepsiCo cutting the pay of its drivers, according to a New York Post report.
Back in August 2017, PepsiCo reduced the salaries for Frito-Lay drivers by as much as $30,000, provoking many to quit, according to the report. In New York, the pay structure was implemented in Manhattan, Queens and Brooklyn; the latter has seen about a quarter of its Frito-Lay drivers vanish since the change.
The action has resulted in a shortage of products, including Doritos, Cheetos, Sun Chips and Fritos, as there aren’t enough drivers on the road to supply every store.
PepsiCo’s new pay structure also cut most of Frito-Lay’s commission incentives, and the ones that do still exist may change once a month, sources told the newspaper. Although the new commission plan has already hit Manhattan, Queens and Brooklyn, PepsiCo will wait to launch it in the Bronx—where 12 of 105 drivers recently quit—in September.
“This is a national initiative with the aim of aligning all sales associates,” a Frito-Lay spokesperson told the newspaper. “Participating sales representatives have on average seen an increase in overall compensation.”
Frito-Lay declined to comment to CSP Daily News about the issue.
Last year, Frito-Lay’s revenue grew about 1.3% during the period ending Sept. 9, partially from strong performances by brands such as Doritos and Cheetos, which helped PepsiCo’s snack volume rise 3.2%, according to PepsiCo's third quarter financial report.
Purchase, N.Y.-based PepsiCo is a global food and beverage leader with a portfolio of more than 22 brands that generate more than $1 billion each in annual retail sales. Besides Plano, Texas-based Frito-Lay North America, its main businesses are Pepsi, Quaker, Tropicana and Gatorade.
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