PepsiCo signaled Tuesday that there will be further price hikes to come for the company’s beverages and snacks as demand remains steady and raw material costs continue to soar amid decades-high inflation.
The company, which owns Frito-Lay and Quaker, boosted its full-year revenue forecast for the year from 8% to 10% while posting its second-quarter earnings report, which beat Wall Street estimates of $19.51 billion in reporting a 5.2% net revenue increase to $20.23 billion in the second quarter.
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PepsiCo CFO Hugh Johnston told Reuters that consumers have been so far undeterred by previous price increases implemented last year, and can expect more to come from the beverage giant.
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“In a world where we’re seeing things like vegetable oil, grains and packaging prices increasing dramatically, I would be surprised if there wasn’t more (price increase) over the course of the next year,” Johnston said.
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The CFO added that Pepsi is also looking to trim costs, and is eyeing cheaper packaging and greater scrutiny in hiring.
Reuters contributed to this report.