PepsiCo to raise prices on small chip bags, Bloomberg reports

May 20 (Reuters) - PepsiCo ‌is preparing ​to ​raise prices on some of its smaller bags of chips ‌due to higher expenses in the U.S., ⁠Bloomberg News reported on Wednesday.

The planned increases were ‌prompted by higher production, ‌distribution and retail expenses in the U.S., and are not a direct response ​to the Iran war, which has caused energy prices to surge, the ⁠report said, citing a PepsiCo spokesman.

The company is planning to ​hike prices by 10 to 20 cents on certain single-serve bags that ​are now retailing for $2.69 ‌in the coming weeks, the report said. Smaller bags, often sold ⁠as two for $1, are also expected to be priced higher, the report added.

An increase ⁠would also apply to a limited number of single-serve ​products beginning in late June, the report also said, citing a company spokesman.

PepsiCo did not immediately ‌respond to Reuters' request for comment.

The company had topped Wall Street ‌estimates in April, helped partly by ⁠the price cuts for ‌salty snacks ​in the U.S.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy ‌Leo)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• FOMC minutes from July 28-29th meeting
• Raymond James on Whirlpool Corporation (WHR): 'July Major Appliance Industrial Production Remained Weak'
• 3D X-ray imaging unlocks the secrets of the narwhal's spiral tusk