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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