Introducing Doritos protein. The taste is like this.
USA TODAY’s Mike Snyder compared Doritos protein chips, which contain 10 grams of protein, to traditional nacho cheese flavored chips.
Fans of snacks like Lay’s and Doritos may quickly notice that prices at convenience stores and in the checkout aisle are a little high.
PepsiCo has confirmed that it plans to raise prices on some single-use chip bags starting in late June, according to NBC News and Bloomberg. The price increase is expected to be about 10 to 20 cents per bag.
The move comes just months after PepsiCo announced deep price cuts on many of its large snack products, including Lay’s, Doritos, Cheetos and Tostitos, as part of an effort to win back cost-conscious shoppers and improve sales in North America. The company announced earlier this year that it would cut prices on some products by up to 15%.
According to Bloomberg, some single-serve chip bags currently retail for about $2.69, but smaller bags often sold in multi-buy promotions are also expected to increase in price. USA TODAY has reached out to PepsiCo for comment.
Here’s what you need to know about the expected price increase for some people’s favorite chips.
Higher costs drive increase
PepsiCo said the upcoming price increases are related to higher production, distribution and retail costs in the United States, according to NBC News and Bloomberg.
The company added that despite the price increase, its affordable pricing strategy is being maintained.
PepsiCo Foods told NBC News that “our commitment to affordability has not changed,” adding that the company has “maintained” the price of its smallest bag of chips for nearly 15 years.
Earlier this year, PepsiCo launched a long-term strategy to cut prices on large bags rather than a temporary promotion. “We have listened carefully to our consumers over the past year, and they told us they were feeling the tension,” Rachel Ferdinand, CEO of PepsiCo Foods, said in an earlier statement shared with USA TODAY.
At the time, PepsiCo said the size, quality and taste of its products would remain the same despite the lower prices, while stressing that consumers did not have to choose between affordability and convenience.
Larger snack bags contributed to increased sales
The small bag price increase comes after months of lower prices for large snack bags sold at grocery stores.
PepsiCo previously told USA TODAY it lowered the recommended price for an 8-ounce bag of Lay’s Classic Potato Chips from $4.99 to $4.29 and lowered the recommended price for an 8.5-ounce bag of Doritos from $6.29 to $5.49.
During PepsiCo’s April earnings call, Chief Financial Officer Stephen Schmidt said the company was “investing in value,” while CEO Ramon Laguarta said lower prices on large snacks were helping draw shoppers back to the category.
According to NBC News, PepsiCo has reduced the price of many large to-go snack bags by up to 15% this year. These price cuts helped boost the company’s revenue by nearly 9% in its most recent quarter.
Bloomberg also reported that PepsiCo beat Wall Street expectations earlier this year, thanks in part to lower snack prices. The company is also restructuring its snack business, cutting its U.S. product line by nearly 20% while introducing products such as Doritos protein chips and versions of Lay’s and Baked Lay’s cooked in avocado and olive oil.
Contributed by: NBC News. Reuters; USA TODAY reporter Mike Snyder
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or on Twitter @athompsonUSAT.
