Pepsi mulls hiking product prices on increased input costs

Pepsi mulls hiking product prices on increased input costs

New Delhi: Global beverage major Pepsico on Thursday said surging commodity prices have seriously impacted the company’s overall cost structure and it may look at passing it on to the consumers.

“It is a very difficult situation. Prices are at a record high right now and that is obviously impacting our overall cost structure...," Pepsico (India region) chairman Sanjeev Chadha said.

He said while prices of sugar, a key ingredient in many of its products have almost doubled, prices of other items like resins are also shooting through the roof.

“It is seriously impacting (us)...a Rs15 to Rs20 per kilo (increase in prices of the commodities) doubles our overall cost structure," he said.

Chadha said although the company has adopted various strategies, including leveraging on the import and looking at reducing sugar content in its portfolio to tide over the situation, if things don’t improve product prices may have to be increased.

“The last resort when there is absolutely no way, then we might pass on to the (increasing price of the products) is certainly there," he said, without giving any time frame the company might do so.