May 20 (Reuters) – PepsiCo is preparing to raise prices on some of its smaller bags of chips due to higher expenses in the U.S., Bloomberg News reported on Wednesday.
The planned increases were prompted by higher production, distribution and retail expenses in the U.S., and are not a direct response to the Iran war, which has caused energy prices to surge, the report said, citing a PepsiCo spokesman.
The company is planning to hike prices by 10 to 20 cents on certain single-serve bags that are now retailing for $2.69 in the coming weeks, the report said. Smaller bags, often sold as two for $1, are also expected to be priced higher, the report added.
An increase would also apply to a limited number of single-serve products beginning in late June, the report also said, citing a company spokesman.
PepsiCo did not immediately respond to Reuters’ request for comment.
The company had topped Wall Street estimates in April, helped partly by the price cuts for salty snacks in the U.S.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
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