Frito-Lay Canada stopped shipping its snack-food brands to the country’s biggest grocery retailer this week amidst a pricing dispute, reports Josh Rubin, Business Reporter for the Toronto Star in this news article. Frito-Lay, owned by Pepsi-Co, said it was trying to pass on some of the increased costs from supply chain woes companies have faced during COVID-19.
“Our business has faced unprecedented pressures from rising costs of items including ingredients, packaging and transportation. To help offset these pressures on our Canadian operations and to ensure that we maintain the high quality our consumers expect, we have made adjustments to our prices that are consistent across the marketplace,” said Pepsi-Co spokesperson Sheri Morgan in an emailed statement.
Loblaw Cos. spokesperson Catherine Thomas says the retailer is focused on trying to keep prices down as much as possible for consumers, something she stressed is difficult to do when the entire food industry is struggling with cost increases.
The decision to withhold shipments from the country’s biggest grocery company is surprising, but could be the prelude to more battles between retailers and suppliers, said retail analyst Lisa Hutcheson.
Source: Toronto Star. Read the full story here
Cover image: FritoLay