PepsiCo says soda, snack prices may rise

PepsiCo signaled Tuesday that there will be further price hikes to come for the company’s beverages and snacks as demand remains steady and raw material costs continue to soar amid decades-high inflation.

Pepsi products are displayed for sale in a Target store on March 8, 2022 in Los Angeles, California. (Photo by Mario Tama / Getty Images / Getty Images)

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PEP PEPSICO INC. 169.50 -0.97 -0.57%

The company, which owns Frito-Lay and Quaker, boosted its full-year revenue forecast for the year from 8% to 10% while posting its second-quarter earnings report, which beat Wall Street estimates of $ 19.51 billion in reporting a 5.2% net revenue increase to $ 20.23 billion in the second quarter.

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Frito-Lay

PepsiCo Lays brand chips for sale at a Dollar General department store in Simpsonville, Kentucky, US, on Thursday, Aug. 12, 2021. (Luke Sharrett / Bloomberg via Getty Images / Getty Images)

PepsiCo CFO Hugh Johnston told Reuters that consumers have so far been undeterred by previous price increases implemented last year, and can expect more to come from the beverage giant.

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“In a world where we’re seeing things like vegetable oil, grains and packaging prices increasing dramatically, I would be surprised if there wasn’t more (price increase) over the course of next year,” Johnston said.

Doritos PepsiCo

PepsiCo Doritos brand chips for sale at a Dollar General department store in Simpsonville, Kentucky, US, on Thursday, Aug. 12, 2021. (Photographer: Luke Sharrett / Bloomberg via Getty Images / Getty Images)

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The CFO added that Pepsi is also looking to trim costs, and is eyeing cheaper packaging and greater scrutiny in hiring.

Reuters contributed to this report.

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