PepsiCo Faces Shopper Backlash Over Imminent Price Hikes on Popular Snacks and Sodas

Snack and beverage giant PepsiCo is preparing to raise prices on several of its popular products, including chips like Doritos and Ruffles, as well as some sodas and SunChips. These increases are anticipated to take effect late in 2026 or early 2027, a move that has already ignited criticism from consumers online who accuse the company of price gouging.

The planned price adjustments come only seven months after PepsiCo reduced prices on key snack brands by up to 15%, a decision that followed widespread consumer complaints about a series of earlier price hikes. At that time, the company stated it had been listening to consumers feeling the strain of rising everyday costs. However, the recent price cuts did not fully resolve sales challenges in PepsiCo's North American food business, which experienced a 2% decline in sales and continued volume pressure in the second quarter.

PepsiCo attributes the upcoming price increases to ongoing inflation and rising commodity expenses. A company spokesperson indicated that these adjustments are designed to keep pace with inflation and are in the low to mid-single-digit percentage range. The spokesperson also noted that the company continues to explore methods to maintain lower prices while balancing affordability with its long-term financial health. Despite the planned increases, PepsiCo asserts that the new prices will remain lower than they were prior to the reductions made earlier this year. For example, consumer spending data from Attain indicated that the price of a 14.5-ounce party-size bag of Doritos at Walmart had risen nearly 50% from $3.98 in 2021 to $5.94.

CEO Ramon Laguarta has previously acknowledged that consumers are experiencing more financial strain than anticipated, partly due to higher gas prices. The broader economic context shows continued consumer price increases, with the Bureau of Labor Statistics reporting a 0.4% rise in consumer prices in August, reaching a 3.4% increase over the previous year. Food prices have also seen an uptick, rising 2.7% over the same 12-month period, with food for home consumption up 2.2%.

Online reactions have been swift and largely negative. Some shoppers have sarcastically questioned the company's pricing strategy, while others have expressed frustration over repeated price increases in recent years, with some bags of Doritos reportedly reaching around $7 before the recent cuts. Many consumers have stated they are switching to cheaper alternatives or store brands, while others plan to wait for sales. The situation is further complicated by pressure from activist investor Elliott Investment Management, which holds a significant stake in PepsiCo and advocates for performance-enhancing changes.

PepsiCo is not alone in facing rising costs, as many food manufacturers grapple with increased expenses for energy, commodities, packaging, and logistics. For consumers, however, the immediate concern is the potential for increased costs on familiar snack items they had recently seen priced lower.