PepsiCo plans price hikes on some chips and sodas, Bloomberg News reports

Sept 24 (Reuters) - PepsiCo is ‌set to ​hike ​prices on some chips and sodas by the end of this year or in early 2027, ‌Bloomberg News reported on Thursday, citing people familiar with ⁠the matter.

The report comes as the snacks and beverage giant navigates ‌a string of challenges, including ‌surging fuel prices, waning demand and shifting customer preferences towards healthy snacking in key markets like the US.

Earlier this ​year, PepsiCo cut prices by up to 15% on products including Lay's and Doritos after customer backlash against ⁠several rounds of previous price hikes.

Activist investor Elliott Investment Management, which disclosed a ​roughly $4 billion stake in PepsiCo last year, has pushed the company to reinvigorate its soda business, ​boost its share price and explore ‌selling non-core food assets.

PepsiCo and Elliott did not immediately respond to a Reuters request for ⁠comment.

PepsiCo shares, which have fallen nearly 10% so far this year, dipped about 1% in morning trading.

Several food and beverage companies have ⁠been contending with rising packaging and logistics costs as the Iran war ​keeps oil prices elevated.

In its latest earnings report, PepsiCo warned of higher commodity costs in the second half of the year and ‌posted a 2% drop in second-quarter sales in its North American food business, although it ‌kept its annual forecast intact.

The company also said in July ⁠that high gas prices had ‌dented consumer demand ​more than it had anticipated.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid and Jonathan ‌Ananda)

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