PepsiCo plans to increase prices by single-digit percentages on some snacks and beverages, including Doritos, Ruffles, SunChips and certain sodas, according to the company and reporting cited by Fox Business. PepsiCo said the adjusted prices will still be below where they stood at the beginning of the year.
The changes follow price cuts announced in February, when PepsiCo said it would lower prices by as much as 15% on selected products, including Lay’s and Doritos. The earlier reductions came after customers objected to previous increases, according to the source report.
PepsiCo attributed the latest increases partly to higher expenses for fuel, aluminum and agricultural inputs. The source report also cited rising costs related to the conflict involving Iran and tariffs, attributing that explanation to the New York Post.
Chief Executive Ramon Laguarta discussed the company’s performance during a conference call Thursday, saying lower prices had helped bring back some customers but that North American results were weaker than expected. He said Frito-Lay snack volumes were flat year over year, while beverage volumes declined 2%. Laguarta also described the beverage business as an area needing improvement.
The report says PepsiCo plans to reduce costs and reinvest savings in beverage brands including Poppi, Mountain Dew and Pepsi. Fox Business said it had contacted PepsiCo for comment.
