PepsiCo Raising Prices on Some Single-Serving Snack Bags

Just a month after reporting sales volume growth in its first quarter attributed to price cuts earlier this year, PepsiCo is reversing course on some items, confirming it will raise prices on its smaller bags of snacks, according to various news reports.

In April, the company reported a 2% volume increase for the first quarter in the North American foods division — the first time it saw volume growth in two years — and said price cuts of as much as 15% were responsible for increasing shelf space for several Frito-Lay brands like Doritos, Lay’s and Tostitos. Those price cuts lured consumers back to purchase the snacks.

However, it appears that price-cut party is over. The company said some of its single-serving snack bags would see a price increase of 10 to 20 cents per bag starting in late June. According to some sources, the company said cost pressures across its business have necessitated the change. It was further reported that price cuts on larger bags that were instituted earlier this year would remain in place.

A company spokesperson told NBC News that most of the smallest snack bags would “still ring up under $3 and many under $2,” and that PepsiCo remained committed to affordability of its products for consumers.