PepsiCo plans new price hikes on chips and sodas after cuts failed to revive sales
The snack maker will raise prices in low- to mid-single-digit range by year-end, still below pre-cut levels, as it grapples with weak demand.
What to know
- PepsiCo is raising prices on select chips and sodas by low- to mid-single-digit percentages by year-end or early 2027, citing inflation, after February price cuts of up to 15% failed to restore sales growth.
- The company faces persistent headwinds: weak consumer demand pressured by high fuel costs, elevated commodity prices, negative volumes in North America, and activist investor Elliott pushing for turnaround actions.
- New prices will remain below pre-cut levels; PepsiCo emphasized efforts to keep prices lower where possible while navigating shifting consumer preferences toward healthier snacking.
“The new prices will be lower than they were before the price cuts earlier this year, and the company is trying to maintain lower prices where it can.”
PepsiCo spokesperson · Reuters/Investing.com ↗
PepsiCo snack and beverage makerElliott Investment Management activist investor ($4B stake)Ramon Laguarta PepsiCo CEO
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PepsiCo announces new price hikes on chips and sodas
PepsiCo revealed plans to raise prices on some chips and sodas in the low- to mid-single-digit percentage range by the end of 2026 or early 2027, citing alignment with inflation. The company stated the new prices will remain lower than pre-cut levels.
“The fresh round of price hikes will be implemented for some chip brands in the low- to mid-single-digit percentage range, which was in line with inflation.”
— PepsiCo spokesperson -
1 outlet first by Investing.com News, 1d ago · read ↗
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Sept 24 (Reuters) - PepsiCo is set to hike some prices after price cuts from earlier this year failed to boost sales, Bloomberg News said on Thursday citing people familiar with the matter. @reuters.com $PEP
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“.. The prices of certain chips will go up by a low-to-mid single digit percentage, aligned with inflation, a spokesperson for PepsiCo said, adding that the new prices will be lower than where they were prior to the price cut earlier this year.” @bloomberg.com $PEP
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background
Analyst warns Elliott may escalate activism over weak North America performance — BNP Paribas analyst Kevin Grundy noted that with North America performance unlikely to recover this year, activist investor Elliott Investment Management—which holds a $4 billion stake—is likely to intensify pressure on PepsiCo, with "everything likely 'in play' for Elliott to dial up activism."
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background
PepsiCo cuts prices up to 15% on chips and sodas — Following customer backlash against multiple prior price increases, PepsiCo reduced prices by up to 15% on products including Lay's and Doritos.