PepsiCo is raising prices on a range of popular snacks and beverages, including Doritos, Ruffles, and SunChips, just months after implementing discounts to lure back budget-conscious consumers.
The increases, reported to be in the single-digit percentages, are driven by higher costs for fuel, aluminum, and agricultural commodities, according to the New York Post. Despite the hike, the company notes that prices will remain below levels seen at the start of the year.
The move marks a sharp strategic pivot. In February, PepsiCo cut prices by as much as 15% on items like Lay’s and Doritos following consumer backlash against prior increases. The latest adjustment reflects persistent inflationary pressures, including costs linked to geopolitical tensions and tariffs.
PepsiCo is raising prices on select 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)
During a conference call Thursday, CEO Ramon Laguarta acknowledged that while lower prices had recaptured some shoppers, the North American division posted weaker-than-expected third-quarter results. Frito-Lay snack volumes were flat year-over-year, while beverage volumes declined 2%.
“We don’t feel good about the beverage business,” Laguarta said, adding that the company will apply “all of the urgency of the business and the focus on improving our performance in soft drinks.”
Doritos is among the popular PepsiCo snack brands expected to see single-digit percentage price increases amid rising production costs. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
To stabilize the portfolio, PepsiCo plans to reduce costs and reinvest savings into key brands such as Poppi, Mountain Dew, and its flagship Pepsi line.
PepsiCo announced plans to raise prices on select beverages as its North American beverage business continues to face sluggish demand. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
FOX Business has reached out to PepsiCo for comment.
