Updated Version 2 - According to Bloomberg, PepsiCo plans to increase prices for some chips and carbonated drinks.

Details were added to the second paragraph

Reuters, September 24 - According to a Thursday report by Bloomberg citing sources familiar with the matter, PepsiCo (PEP.O) plans to raise prices on some of its chips and carbonated drinks by the end of this year or in early 2027.

This report comes as the snack and beverage giant is facing a series of challenges, including surging fuel prices, weak demand, and a shift among consumers in major markets such as the United States toward healthier snacks.

Earlier this year, after a strong consumer backlash against multiple rounds of price increases, PepsiCo lowered prices on products including Lay's and Doritos (link) by as much as 15%.

Activist investor Elliott Investment Management revealed last year that it held about $4 billion worth of PepsiCo shares, (link) and has been pushing the company to revive its carbonated drinks business, boost its stock price, and explore the sale of non-core food assets.

PepsiCo and Elliott Investment Management have not yet responded to a request for comment from Reuters.

PepsiCo's share price has fallen nearly 10% so far this year and dropped about 1% in early trading.

With oil prices remaining high due to the situation in Iran, many food and beverage companies are facing challenges from rising packaging and logistics costs.

In its latest financial report (link), PepsiCo warned that commodity costs would increase further in the second half of the year, and reported that its North American food business saw a 2% decline in second-quarter sales, although the company maintained its full-year outlook.

The company also stated in July that the impact of high oil prices on consumer demand exceeded its expectations.

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