PepsiCo CFO warns of higher product prices in early 2022

Consumers of PepsiCo products may soon be paying more for their favorite beverages and snack foods, according to a warning from Hugh Johnston, the company”™s chief financial officer.

In an interview with Reuters, Johnston stated the Purchase-headquartered company needed to “scramble” to deal with a shortage of cans and plastic bottles over the past few months in the face of a new demand created by the lifting of pandemic-era restrictions on theaters and restaurants. The company is also dealing with a shortage of truck drivers to deliver its products to client outlets.

PepsiCo has raised the prices of its sodas and snacks in recent weeks in response to increased costs of raw materials, and Johnston predicted higher prices will be added in the new year.

“I do expect there will probably be some price increases in the first quarter of next year as well, as we fully absorb and lock down the impact of commodity inflation,” Johnston said.

However, Johnston also predicted most of the supply-chain disruptions it is facing will begin to moderate by the end of the year. He does not foresee a shortage of its products on supermarket shelves.