PepsiCo Reverses Part of Snack Discount as Earnings Test Looms

PepsiCo is raising prices on some chip brands by a low- to mid-single-digit percentage after cutting them earlier in the year, citing inflation. The company said the new prices will remain below pre-discount levels, and retailers still set final shelf prices. PepsiCo’s October 8 quarterly report will show whether recent volume gains can hold with a smaller discount.

PepsiCo had reduced prices on Lay’s and Doritos by as much as 15% seven months earlier. On Sept 24, it said some chip brands would go up by low- to mid-single digits, tied to inflation; Bloomberg reported some sodas and dips were also included. Shares fell about 1.6% to $128.15 that day after a 52-week low on Sept 18. Q3 results are due Oct 8.

In Q2, PFNA’s lower net pricing reduced revenue by 2 points, organic volume was flat, segment revenue slipped 2% to $6,368M, and core operating profit fell 8% to $1,369M. First-half volume rose 1%, and the unit gained share. New chip prices remain below pre-discount levels; retailers set shelf prices.

Count words. First para: PepsiCo(1) had2 reduced3 prices4 on5 Lay’s6 and7 Doritos8 by9 as10 much11 as12 15%13 seven14 months15 earlier16. On17 Sept18 24,19 it20 said21 some22 chip23 brands24 would25 go26 up27 by28 low-29 to30 mid-single31 digits32, tied33 to34 inflation35; Bloomberg36 reported37 some38 sodas39 and40 dips41 were42 also43 included44. Shares45 fell46 about47 1.6%48 to49 $128.1550 that51 day52 after53 a54 52-week55 low56 on57 Sept58 18.59 Q360 results61 are62 due63 Oct64 8.65. Second: In66 Q2,67 PFNA’s68 lower69 net70 pricing71 reduced72 revenue73 by74 2 points75, organic76 volume77 was78 flat79, segment80 revenue81 slipped82 2%83 to84 $6,368M85, and86 core87 operating88 profit89 fell90 8%91 to92 $1,369M93. First-half94 volume95 rose96 1%97, and98 the99 unit100 gained101 share102. New103 chip104 prices105 remain106 below107