frito lay price increase

People boycotting Frito-Lay in Canada after latest price increase

One of Canada's biggest food and snack manufacturers, Frito-Lay, has hiked its prices again at some grocery stores across the country, a change retailers are attributing to food inflation. 

The snack food conglomerate, which owns brands like Lay's, Doritos, Ruffles, Cheetos, Sun Chips, and Tostitos, has introduced a 10 to 11 per cent hike at some stores, according to several retailers. 

Gary Sands, senior vice-president of the Canadian Federation of Independent Grocers confirmed that the PepsiCo-owned manufacturer introduced price increases at several of its member stores this week. 

Needless to say, consumers in Canada are not happy and many are calling for a boycott of the chip brand.

"The timing of the Pepsi-Frito Lay price hike coming exactly one week before the House of Commons resumes its hearings on price inflation, is actually good in that it again shows that there are many price increases being imposed on retailers," Sands told The Globe and Mail

"If you are, for example, an independent grocer with [profit] margins of around two per cent, then increases in costs such as the double-digit price hikes from Pepsi-Frito-Lay, simply have to be passed on to the consumer. There is no other option." 

Last year, the potato chip manufacturer withheld product shipments to all stores own by Loblaw Companies Ltd. due to a "dispute over price hikes." Frito-Lay stopped filling orders for a number of weeks to Loblaw stores after the latter refused to accept the increase in prices

Skyrocketing food costs have become the norm during rising inflation, and retailers say the trend is expected to continue. 

On Tuesday, Loblaw Companies Ltd. confirmed that the price freeze —which usually runs from November to February — on No Name products would not be extended as scheduled

According to Canada's Food Price Report, grocery prices are expected to increase by five to seven per cent in 2023.

Rising food costs are being attributed to disruptions to the food supply chain, climate change, labour force challenges, food transportation challenges, and of course, high inflation. 

Lead photo by

Mike Mozart

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