Loblaws restocks Frito-Lay chips, ending a pricing war
9 April 2022
Loblaws will resume stocking Frito-Lay products on Monday after an absence of several months caused by a pricing dispute between the two companies. The two companies have been competitors in the food industry.
In February, the snack food manufacturer Frito-Lay, which is owned by PepsiCo and is responsible for brands such as Cheetos, Doritos, Lays, Ruffles, and Sunchips, caused an unexpected food fight when it severed ties with one of the largest grocery chains in Canada because the chain refused to pay a price increase.
Frito-Lay stated in February that it took the unusual action because it was facing “unprecedented pressures from escalating costs of things, including ingredients, packaging, and shipping,” and that it was pressuring Loblaws to raise prices to recoup those higher expenses. Frito-Lay claimed that it was pressuring Loblaws to raise prices because it was facing “unprecedented pressures from escalating costs of things, including ingredients, packaging, and shipping
On the other side, Loblaws has stated that it is “laser focused” on maintaining prices at the lowest feasible level, hence the company has declined to pass on those costs.
According to the Financial Post, a partnership agreement has been reached between Loblaws and PepsiCo.
A spokeswoman from Loblaws declined to comment on the deal, saying instead that the company is “happy to once again have a wide choice in our chip aisle.”
The long-running dispute between Pepsi-Co Foods and Loblaw regarding food products has been settled.
For the Easter holiday, consumers who shop at grocery stores controlled by Loblaw can anticipate finding Doritos, Ruffles, Tostitos, and other Frito-Lay chips in the aisles of those stores.
In an email sent out on Saturday, a spokesman for Loblaw, Catherine Thomas, stated that “offering value to our clients has been our primary focus throughout this entire process.”
According to Thomas, “We’re glad to once again have a wide assortment in our chip aisle, with a combination of new Canadian flavors and traditional favorites, at varied pricing to fit the needs of our consumers.” “We’re happy to have a wide assortment in our chip aisle.”
Thomas informed everyone that “items will begin shipping on Monday and we anticipate to be completely stocked by the Easter weekend.”
The arrangement encompasses the Quaker and Frito-Lay chips lines respectively.
The information regarding the anticipated speedy return to normalcy of shipments was provided by Loblaws in an email that was distributed to retailers and which was obtained by The Star.
