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PepsiCo is raising prices on some of its popular chips and sodas, including Doritos, Ruffles and SunChips, just months after cutting prices in an effort to win back inflation-weary shoppers.
The company said prices on certain snacks and drinks will rise by single-digit percentages as it deals with higher costs for fuel, aluminum and agricultural supplies, according to the New York Post.
However, the company said the new prices will still be lower than they were at the beginning of the year.
The price hikes come after PepsiCo announced in February that it was cutting prices by up to 15% on certain products, including Lay’s and Doritos, according to Reuters.
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The company said at the time it was slashing prices after its previous price increases generated customer backlash.
The latest increases mark a shift in strategy for the food and beverage giant.
According to The Post, PepsiCo attributed the latest price increases in part to rising costs associated with the conflict involving Iran and tariffs.
PepsiCo CEO Ramon Laguarta said during a conference call Thursday that while lower prices helped bring back some customers, the company’s North American division reported weaker-than-expected third-quarter results.
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Laguarta said the company had hoped the trend would improve sooner than it has, noting that Frito-Lay snack volumes were flat compared with the same period last year, while beverage volumes fell 2%.
The company’s sodas, including its flagship Pepsi brand, have struggled against competitors, he added.
“We don’t feel good about the beverage business,” Laguarta said.
He also said PepsiCo will put “all of the urgency of the business and the focus on improving our performance in soft drinks.”
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PepsiCo plans to cut costs and reinvest the savings in beverage brands including Poppi, Mountain Dew and Pepsi, according to The Post.
FOX Business has reached out to PepsiCo for comment.
