PepsiCo to raise single-serve chip bag prices by 10–20 cents in June
PEP•PepsiCo will increase prices by roughly 10 to 20 cents on select single-serve chip bags starting late June, reversing its strategy on snack pricing. The company’s prior 15% discounts on larger take-home snack bags helped drive a 9% revenue increase in its most recent quarter, while pack sizes and quality remain unchanged.
1. Shift in Snack Pricing Strategy
After investing in value by cutting prices on larger take-home snack bags by up to 15%, PepsiCo is now raising prices on select single-serve chip bags by roughly 10 to 20 cents starting in late June, marking a split in its snack pricing approach.
2. Financial and Revenue Implications
The earlier price reductions on larger bags contributed to nearly 9% revenue growth in the latest quarter, while the modest increases on smaller bags aim to offset longer-running production and distribution cost pressures without altering pack sizes or product quality.
3. Consumer Affordability and Market Dynamics
Most single-serve bags will still retail under $3, many under $2, as the company maintains its commitment to affordability. This move comes as lower-income consumers pull back on discretionary spending while higher-income households sustain purchasing power.
