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Buying Doritos, Ruffles and other PepsiCo-owned chips, sodas and dips may cost consumers a little more as the snack company plans to raise prices.
The Lay’s maker said prices on certain chips will rise by a low- to mid-single-digit percentage, an increase the company says is in line with inflation. The higher prices are expected to take effect by the end of 2026 or early 2027, according to Reuters.
Grocery-store-sized bags of chips, including Doritos and Ruffles, are among the products expected to become more expensive. SunChips and some sodas are also expected to increase in price, according to the Financial Post.
The changes come just months after PepsiCo lowered prices on many larger snack bags by as much as 15% to win back shoppers frustrated by higher prices.
Which PepsiCo products could cost more?
PepsiCo has not announced specific new prices for the affected products; however, they will reportedly still be lower than they were before the price cuts earlier this year.
In addition to Doritos, Ruffles and SunChips, some sodas are expected to become more expensive. PepsiCo has warned some retailers about the upcoming increases, according to the Financial Post.
Some dips have already gone up in price. The Financial Post reported that extra-large and extra-extra-large Tostitos salsa jars, as well as Fritos canned dips, were among the products that received higher pricing. At Dollar General, an extra-large Tostitos salsa jar rose to $4 from $3.80, while an extra-extra-large jar rose to $5.50 from $4.95. Fritos canned dips increased to $3.75 from $3.30.
How much will PepsiCo’s chips cost?
The exact prices shoppers will pay will depend on the product and retailer.
Earlier this year, PepsiCo lowered the suggested everyday price of an 8-ounce bag of Lay’s Classic Potato Chips from $4.99 to $4.29. The suggested price of an 8.5-ounce bag of Doritos fell from $6.29 to $5.49.
Retailers ultimately decide how much of a supplier’s price increase to pass on to shoppers.
Why is PepsiCo raising prices?
PepsiCo said the latest chip price increases are intended to keep pace with inflation.
The company is also facing higher commodity costs in the second half of the year, according to Reuters. Food and beverage companies have been dealing with higher packaging and logistics costs, the outlet reported.
At the same time, PepsiCo has been trying to revive demand in North America. Its North American food sales fell 2% in the second quarter, while the company said higher gas prices hurt consumer demand more than expected.
The company has responded by cutting prices on some snacks, changing its product lineup and introducing new products, including Doritos Protein. PepsiCo said it remains committed to keeping prices lower where it can, even as some products become more expensive.
Contributing: Reuters
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or on X @athompsonUSAT