PepsiCo hikes prices by double digits for the 7th consecutive quarter
Price hikes lifted PepsiCo’s profits in the third quarter, but the company says those increases are likely to moderate in the coming year.
Pepsi raised prices 11% in the July-September period, the seventh straight quarter that the Purchase, New York, company has increased prices by double-digits. The higher prices took a toll on demand, with sales volumes down 2.5%.
PepsiCo said some of that volume decline is strategic. The company said it has been shrinking package sizes to meet consumer demand for convenience and portion control.
“Units are growing much faster than volume,” PepsiCo Chairman and CEO Ramon Laguarta said Tuesday in a conference call with investors.