PepsiCo to raise prices on Doritos and other snack brands

PepsiCo has announced upcoming price increases for several of its major snack and beverage brands, including Doritos, Ruffles, SunChips, and various sodas. The company cited rising operational costs as the primary driver, specifically noting increased expenses for ingredients, agricultural commodities, cooking oils, packaging, aluminum, and fuel.

The price adjustments are expected to remain within the low-to-mid single-digit range. This decision follows a period earlier this year when PepsiCo reduced prices on brands like Lay’s and Cheetos by up to 15% in an attempt to win back consumers facing inflation fatigue. While those reductions initially helped rebound sales, the company noted that persistent supply chain pressures and a slump in North American sales necessitated the new hikes.

In response to softer domestic sales, PepsiCo has lowered its full-year earnings expectations, projecting adjusted growth per share between 2.5% and 3.5%, down from previous estimates of 5% to 7%. The company also noted that sales volumes in Canada remained weak and North American beverage volumes saw a decline.