PepsiCo to raise some chip prices as input costs bite
PEP•PepsiCo will raise prices on some chip brands by low- to mid-single-digit percentages, citing inflation. New prices will remain below levels before the company cut prices by up to 15% in February.
1. Price increases planned
PepsiCo will raise prices on some chip brands by low- to mid-single-digit percentages, a company spokesperson said. The increases are expected to affect grocery-store-sized bags of brands including Doritos and Ruffles, with some sodas also expected to rise in price by the end of this year or early 2027, a report said.
2. Sales and cost pressures
The spokesperson said the new prices will be lower than before February’s cuts, and PepsiCo is trying to maintain lower prices where possible. The company has faced shifting preferences toward healthier snacks, weak household demand and higher commodity costs. Its North American food business reported a 2% sales decline in the second quarter, while PepsiCo warned of higher commodity costs in the second half.
3. Activist investor interest
Elliott Investment Management, which disclosed a roughly $4 billion stake in PepsiCo last year, has pushed the company to revive its soda business, boost its share price and consider selling non-core food assets. PepsiCo shares had fallen nearly 10% so far this year and dipped about 1% in morning trading.
