Beverage majors PepsiCo and Coca-Cola are looking forward for a price hike for the first time in three years, with soaring sugar prices and a 15-day stock cap on the sweetener denting their profitability.
The hikes could be between 20-25 per cent, according to a company official, adding that the timing of the hikes has not yet been firmed up. “We are looking forward for all posibilities to work out in the current crisis situation. Peak summer is over, so the companies may decide to take up prices before next season,” the official confirmed.
A PepsiCo India spokesman confirmed the plan to hike prices. “As of now, we do not have an option but to increase prices on most packages. Our teams are working hard on maximising productivity and ensuring procurement efficiencies. But their efforts are constrained by the government’s new ceiling of 15 days’ inventory,” he said.
PepsiCo India posted 50 per cent volumes growth in the July-September ’09 quarter – the highest in the PepsiCo system globally.