PepsiCo is hinting that it might increase the prices on its beverages and snack foods, citing little consumer opposition to earlier price hikes on those items.
In an interview with Reuters, PepsiCo Chief Financial Officer Hugh Johnston said the company had not witnessed any slowing in consumer demand following price hikes that went into effect in late 2021, adding that prices could go up even further.
“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 the next year,” Johnston said, adding the company was also exploring cost-cutting measures including cheaper packaging and less aggressive hiring.
Johnston”™s remarks came after the Purchase-headquartered company reported second-quarter net revenue $20.23 billion, a 5.2% year-over-year increase. PepsiCo also recorded a $1.4 billion charge in the second quarter that was mostly due to writing down of some assets as a result of its withdrawal from the Russian market.
