• PepsiCo will raise carbonated soft drink concentrate prices by 10% starting September 7, according to sources.
  • Wholesale prices for finished canned and bottled drinks sold to bottlers will increase between 3.0% and 5.0%, varying by brand.
  • The move is a direct response to escalating input costs, particularly those exacerbated by recent tariffs on aluminum.

PepsiCo Inc. is set to implement a significant price increase on its carbonated soft drink concentrate, with a 10% hike effective September 7, according to people familiar with the matter. The company will also raise wholesale prices for the finished canned and bottled beverages it sells directly to its network of independent bottlers for distribution, with those increases expected to range from 3.0% to 5.0% depending on the specific brand.

The decision, communicated to bottlers this week, marks the latest effort by the food and beverage giant to mitigate the impact of rising input costs that have pressured margins across the sector. The most acute pressure stems from a 25% tariff on imported aluminum, a key material for beverage cans, which has significantly driven up production expenses. This will be the eighth consecutive quarter in which PepsiCo has enacted a double-digit price increase on concentrate, an unprecedented run that underscores the persistent nature of current inflationary pressures.

Efforts to reach a PepsiCo spokesperson for official comment were not immediately successful. The company’s most recent quarterly filing highlighted improved operating margins in its North America beverage segment, but also cautioned that full-year 2025 earnings are expected to decline due to these exact cost headwinds.

The price adjustment is not happening in a vacuum. Rival Coca-Cola Co. and other major beverage manufacturers are facing similar cost structures and are widely expected by industry analysts to follow with comparable pricing actions in the coming months. The cumulative effect of these ongoing increases is testing the resilience of consumer demand, though category-wide sales in carbonated soft drinks have so far remained resilient, posting gains in the first half of the year.

For PepsiCo’s bottlers, the concentrate price hike directly impacts their cost of goods sold, while the increase on finished products affects their purchasing costs for items like PepsiCo-branded bottled waters and ready-to-drink teas that they don't produce themselves. The final impact on shelf prices for consumers will be determined by these bottlers and retailers, but further increases at the checkout aisle appear inevitable. The broader implications point to a continued period of elevated prices as the industry grapples with a new, higher-cost normal driven by trade policy and supply chain realities.