Starting with April 15, 2022, PepsiCo will raise the prices of some Lay’s-branded potato chips from April 15 because of higher costs, practically the first price hike since May 2019.
According to a source close to Yicai Global, PepsiCo China must cautiously raise the prices, even though it has taken steps to cut costs and boost production efficiency.
The cost of raw materials rose 15% to 20% last year, but some large businesses managed to offset some cost gains with long-term contracts. They are expected to increase about another 15% this year, noting that small food manufacturers are likely to face greater cost pressures.
New York-based PepsiCo has many businesses in the Chinese market, including beverages and food. Its net income from the country soared 55% to USD2.7bn in 2021.
