(Front Office Sports) — PepsiCo is set to raise its prices to offset the costs of supply chain issues, including shortages of plastic bottles for Gatorade sports drinks.
The food and beverage giant has dealt with higher transportation and commodity costs amid the pandemic and says it will likely integrate a price hike in the fiscal first quarter of 2022. Sales, however, remain strong.
PepsiCo raised its full-year forecast for 2021 on Tuesday following an impressive third-quarter earnings report. Revenue jumped 11.6% year-over-year to $20.19 billion, surpassing Wall Street estimates of $19.39 billion.
It now expects total revenue to increase by 8% this year, up from a previous estimate of 6%.
- Gatorade holds a 67.7% market share of the U.S. sports drink market, per Euromonitor.
- The NBA renewed its official soft drink and chip partnership with PepsiCo earlier this year.
- In its last major acquisition, the company acquired Rockstar Energy in March 2020 for $3.85 billion.
In March, NBA superstar LeBron James finalized a multiyear endorsement deal with PepsiCo, leaving Coca-Cola after 17 years in a move first reported by Front Office Sports. The terms of the agreement were not disclosed.
Despite supply chain setbacks, PepsiCo CFO Hugh Johnston told Reuters a shortage of products like Gatorade at supermarkets is not expected.
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