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PepsiCo is raising prices on some of its popular chips and sodas, including Doritos, Ruffles and SunChips, just months after cutting prices in an effort to win back inflation-weary shoppers.
The company said prices of some snacks and drinks would increase by a single-digit percentage due to rising costs of fuel, aluminum and agricultural supplies, according to the New York Post.
However, the company said the new prices would remain lower than at the start of the year.
The price hikes come after PepsiCo announced in February that it was cutting prices by up to 15% on some products, including Lay’s and Doritos, according to Reuters.
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PepsiCo is raising prices on some snacks, including Doritos, Ruffles and SunChips, just months after cutting prices to attract cost-conscious shoppers. (Patrick T. Fallon / AFP via Getty Images / Getty Images)
The company said at the time that it was reducing prices after its previous price increases generated backlash from customers.
The latest increases mark a shift in strategy for the food and beverage giant.
According to The Post, PepsiCo attributed the latest price increases in part to rising costs associated with the conflict involving Iran and tariffs.
PepsiCo CEO Ramon Laguarta said on a conference call Thursday that while lower prices helped bring back some customers, the company’s North American division reported weaker-than-expected third-quarter results.
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Doritos is among popular PepsiCo snack brands expected to see a single-digit price increase amid rising production costs. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
Laguarta said the company hoped the trend would improve sooner than it did, noting that Frito-Lay snack volumes were flat compared to the same period last year, while beverage volumes fell 2%.
The company’s sodas, including its flagship Pepsi brand, have struggled to compete with competitors, he added.
“We’re not happy with the beverage business,” Laguarta said.
He also said PepsiCo would put “all corporate urgency and focus on improving our performance in the soft drinks business.”
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PepsiCo announced plans to raise prices on some drinks as its North American beverage business continues to face sluggish demand. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
PepsiCo plans to cut costs and reinvest the savings into beverage brands such as Poppi, Mountain Dew and Pepsi, according to The Post.
FOX Business has contacted PepsiCo for comment.
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