(Yicai Global) March 22 -- US food and beverages giant PepsiCo will raise the prices of some Lay’s-branded potato chips from April 15 because of higher costs, Yicai Global learned. It is the first price hike since May 2019.

PepsiCo China must cautiously raise the prices of some products, a company source told Yicai Global yesterday, even though it has taken steps to cut costs and boost production efficiency.

Two food distributors in China’s Shandong province said they have not received any notice about the price mark-up of Lay’s chips.

The price hike is not surprising, a source at a large food company told Yicai Global. The cost of raw materials rose 15 percent to 20 percent last year, but some large businesses managed to offset some cost gains with long-term contracts, the person said.

They are expected to increase about another 15 percent this year, he added, noting that small food manufacturers are likely to face greater cost pressures.

New York-based PepsiCo has many businesses in the Chinese market, including beverages and food. Its net income from the country soared 55 percent to USD2.7 billion last year.

Editor: Futura Costaglione