PepsiCo plans to raise prices on grocery-size bags of Doritos, Ruffles and SunChips, along with some sodas, by the end of this year or early 2027, the company told Bloomberg. The increases will be in the low-to-mid single-digit percentage range.
PepsiCo cut prices on its key chip brands by as much as 15% in February after some bags topped $7. The company said the new prices will remain below levels before the cuts.
PepsiCo’s North American food business reported a 2% revenue decline in the second quarter, with volume flat, per Transport Topics. CEO Ramon Laguarta said high gas prices had reduced purchases at convenience stores and gas stations. “We’re going to have to optimize the return on investment on some of those pricing investments,” he said on a July call. CFO Steve Schmitt said he expects more commodity cost pressure in the second half.
Some dip prices are already up at retail:
Extra-large Tostitos salsa, from $3.80 to $4.00
Extra-extra-large Tostitos salsa, from $4.95 to $5.50
Fritos canned dips, from $3.30 to $3.75
Food and beverage companies have been contending with higher packaging and logistics costs as the Iran war keeps oil prices up. Campbell’s and Conagra are also raising prices, citing energy and fertilizer costs and tariffs on imports.
PepsiCo is also merging its Frito-Lay and Pepsi truck networks into shared mixing centers to lower delivery costs, starting with a site in Brookshire, Texas.
