PepsiCo to raise prices on snacks after weak North America quarter
Summarised from 2 outlets · Updated 8 Oct, 19:55 · Archive
PepsiCo plans price increases on Doritos, Ruffles and SunChips after disappointing third-quarter performance in North America.
PepsiCo is raising prices on snacks including Doritos, Ruffles and SunChips, and cutting corporate costs, following weak third-quarter results in North America. The company says it must recoup rising costs for fuel, aluminium and agricultural commodities. Price increases will be in the single-digit percentage range and remain lower than prices at the start of the year.
PepsiCo had offset rising costs during the most recent quarter using a $178 million tariff refund issued by the U.S. government after the Supreme Court struck down President Donald Trump's global tariffs. However, the company said that money will not be available in coming quarters. Frito-Lay snack food volumes were flat in the July-September period compared with the same period last year, whilst beverage volumes fell 2%.
The company previously cut prices on Lay's, Doritos, Cheetos and Tostitos chips by up to 15% before the Super Bowl following pressure from activist investor Elliott Investment Management, which took a $4 billion stake. PepsiCo said the lower prices have brought back some consumers, but third-quarter results remained weaker than hoped, partly due to weak sales in Canada.
How it is being reported
- PepsiCo is raising prices on Doritos and more after a weak quarter in North AmericaPittsburgh Post-Gazette · 8 Oct, 19:38
- PepsiCo is raising prices on Doritos and more after a weak quarter in North AmericaPepsiCo plans to raise prices on some snacks and drinks and slash corporate costs after a disappointing performance in North America during the third quarter.TribLIVE · 8 Oct, 17:19
In this story: PepsiCo · Elliott Investment Management · North America · Canada · Donald Trump
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