PepsiCo shares slip as Bloomberg reports retreat from snack price cuts
Investing.com -- PepsiCo (NASDAQ: PEP) shares fell 0.5% after Bloomberg reported the company plans to raise prices on some chips, soda and dips following earlier price cuts that failed to boost sales.
The beverage and snack giant will increase prices on grocery-store-sized bags of chips, including Doritos and Ruffles, which had been reduced earlier this year, according to people familiar with the plans cited by Bloomberg. The price increases will extend to other brands, including SunChips, and are expected to take effect at the end of this year or early 2027.
The prices of certain chips will rise by a low-to-mid single digit percentage, aligned with inflation, a PepsiCo spokesperson said. The spokesperson added that the new prices will remain lower than levels prior to the price cut earlier this year. The company said it is still working to maintain lower prices where possible and remains committed to its affordability effort.
The planned price increases come after PepsiCo’s earlier strategy of cutting prices failed to generate sales growth, according to the Bloomberg report. The reversal highlights the challenges facing consumer goods companies as they balance inflation pressures with consumer demand for affordable products.