PepsiCo will raise prices to offset higher costs

The maker of Mountain Dew and Doritos has improved its ability to leverage demographic data across regions, allowing it to use its shelf space more efficiently, PepsiCo Inc chief financial officer Hugh Johnston said.

LOS ANGELES: PepsiCo Inc chief financial officer Hugh Johnston says higher prices will be the “No. 1” tool the beverage and snack maker will use to offset higher commodity, transportation and supply chain costs.

Speaking in an interview, Johnston said PepsiCo would also change the mix of products it sells in a bid to nudge shoppers toward more profitable items – like variety packs of Lay’s chips instead of larger bags.