PepsiCo to raise snack prices amid inflation and GLP-1 concerns

PepsiCo is preparing to implement price increases on several major snack and beverage brands in the United States, including Doritos, Ruffles, and SunChips. The company confirmed that prices for certain products could rise by low- to mid-single-digit percentages, with some adjustments for sodas and dips potentially occurring between late 2026 and early 2027.

This strategic shift follows previous price cuts of up to 15% implemented in February, which aimed to stimulate demand and combat consumer backlash. However, these reductions failed to significantly boost sales volumes, as North American food sales declined by 2% in the second quarter. The company is now facing pressure from rising commodity, packaging, and logistics costs.

Beyond immediate pricing challenges, PepsiCo faces long-term valuation risks. An analysis by Brand Finance suggests that the rise of GLP-1 weight-loss medications could impact the brand value of snack portfolios. Specifically, the brand value of Lay’s is estimated at $6.8 billion, part of a broader $73 billion in global food brand value that may be threatened by changing consumer eating habits driven by these medications.