PepsiCo Plans Single-Digit Price Increases After Beverage Volumes Fall

PepsiCo plans single-digit price increases on selected snack and soda products after weak North American beverage volumes and higher operating costs pressured its third-quarter performance.

The increases will affect some Doritos, Ruffles, SunChips and soda products. PepsiCo said prices should remain below their levels at the start of 2026, despite higher fuel, aluminum and agricultural-commodity costs.

The company received or recognized a $178 million tariff-refund benefit during the third quarter. The benefit came from claims involving duties paid previously, and management said it would not be available in coming quarters.

PepsiCo’s third quarter ended Sept. 5, and the company released its results at about 6 a.m. ET (10 a.m. UTC) on Oct. 8. Net revenue rose 5.6% to $25.27 billion, while net income increased 17% to $3.07 billion. Core EPS was $2.34.

Frito-Lay snack volumes were flat from a year earlier, while beverage volumes declined 2% in the third quarter. PepsiCo Chairman and CEO Ramon Laguarta said the company was dissatisfied with its beverage business.

“We do not feel good about the beverage business,” Laguarta said during the company’s earnings call.

PepsiCo previously reduced prices on selected Lay’s, Doritos, Cheetos and Tostitos products by as much as 15% before the 2026 Super Bowl. The affordability strategy was intended to rebuild demand after price increases during 2022 and 2023, and the company said it brought some consumers back.

The latest results add to pressure in PepsiCo’s North American foods business, following earlier coverage of its regional performance.

PepsiCo lowered its full-year adjusted EPS growth forecast to 2.5% to 3.5%, from 5% to 7%. It raised its full-year revenue growth forecast to 6%, compared with its previous range of 4% to 6%.

“We’re putting all the urgency of the business and the focus in improving our performance in soft drinks,” Laguarta said.