With an annual dividend yield of 3.93%, PepsiCo, Inc. (NASDAQ:PEP) is included among the 10 High Yield Stocks for Lasting Retirement Income.
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On May 20, Bloomberg reported that PepsiCo, Inc. (NASDAQ:PEP) is preparing to raise prices on some of its smaller chip bags, according to people familiar with the matter. The move comes even as the company recently lowered prices on larger chip bags after facing pushback from consumers.
The report said PepsiCo plans to increase prices by 10 to 20 cents on certain single-serve bags that currently retail for $2.69. The changes are expected to roll out in the coming weeks. Sources familiar with the matter said the smaller bags often sold as two for $1 are also likely to see higher prices. A company spokesman said the increase would affect only a limited number of single-serve products starting in late June. The planned price hikes reflect the pressure companies continue to face from rising costs after years of inflation-strained consumers and lifted prices across the market.
PepsiCo said the increases are tied to higher production, distribution, and retail costs in the US. The company added that the move is not directly related to the war in Iran, which has pushed energy prices higher. According to the spokesman, PepsiCo’s US food business had kept prices steady on some single-serve products for nearly 15 years. Some of the smaller chip bags have already had the suggested retail price removed from the packaging, which often signals that pricing changes are coming.
The changes follow PepsiCo’s broader effort to reduce prices on larger family-sized chip bags by as much as 15%. The company introduced those cuts after some consumers pulled back from buying Frito-Lay products as prices on certain bags climbed above $7. The spokesman said those lower prices on larger bags will remain in place.
Chief Executive Officer Ramon Laguarta said in April that lowering prices on family-sized chip bags helped improve sales and brought back shoppers who had stopped purchasing Frito-Lay snacks. He also noted that retailers are giving the company more shelf space as part of agreements tied to the larger bag price reductions.
PepsiCo, Inc. (NASDAQ:PEP) is a global beverage and convenient food company. Its business segments include PepsiCo Foods North America, PepsiCo Beverages North America, International Beverages Franchise, Europe, the Middle East and Africa, Latin America Foods, and Asia Pacific Foods.
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