Pepsi flagged higher prices this week. The pattern from 2021 and 2022 is repeating, where companies raised prices aggressively despite flattish volumes. What looked like a one-off tied to the Iran war two months ago now looks more structural. Companies are already telling markets they are raising prices into 2027.

PepsiCo $PEP is raising prices on some chips, soda and dips The company is expected to increase the prices on grocery-store-sized bags of chips, including Doritos, SunChips, and Ruffles, which had been cut earlier this year - Bloomberg

PEPSICO TO RAISE PRICES $PEP plans to raise prices on select chips, soda and dips by year-end or early 2027, just months after cutting snack prices by as much as 15% to revive demand. Some chip prices are expected to rise by a low-to-mid single-digit percentage, though Pepsi says they will remain below pre-cut levels. The move comes after North American food revenue fell 2% last quarter while volumes remained flat. Source: Bloomberg

PepsiCo CEO reveals customers are buying fewer snacks because of rising gas prices: "I think the consumer is worse than what we had anticipated. And it's driven mainly by gas prices."

PepsiCo, the parent company of Doritos, lost over $1 billion after raising the price of a bag of Doritos to $6-$7. People stopped buying them. They later lowered the price to recover some of the lost revenue, but sales are still down. I love that for them.