PepsiCo to hike prices on Doritos, sodas -- reversing recent effort to save consumers money

Key Points:

• PepsiCo is raising prices on some chips and drinks by single-digit percentages due to soft soda sales, rising costs for fuel, aluminum, and agricultural supplies, and challenges in its turnaround plan, though prices remain lower than at the start of the year.
• The price hike marks a shift from earlier this year when PepsiCo cut prices by up to 15% on key snack brands to attract inflation-battered consumers, but third-quarter earnings in North America were weaker than expected with flat snack volumes and a 2% decline in beverage volumes.
• CEO Ramon Laguarta acknowledged struggles in the beverage segment, citing increased competition and changing consumer habits influenced by weight-loss drugs and soda alternatives, and pledged to focus on improving soft drink performance.
• PepsiCo plans to cut costs and reinvest savings into growing healthier product lines like the probiotic soda Poppi, Mountain Dew, and Pepsi, while expanding high-protein offerings to appeal to consumers using weight-loss drugs.
• Despite challenges in North America, PepsiCo reported better-than-expected third-quarter revenue driven by international markets and World Cup demand, but lowered its annual earnings growth forecast to 2.5%-3.5%, with shares rising 2.6% following the announcement.