Pepsi continues with its price increases and aims to reach the price level of Coca-Cola, according to a report in the “Handelsblatt” newspaper. Since 2022, prices have already increased by a whopping 50 percent. But apparently this is not enough for the company. Therefore, the average price of a liter of Pepsi should be the same as that of Coca-Cola. The aim is to close the 30 cent difference between 1.5 liter bottles, which still exists today between Pepsi and Coca-Cola.

However, previous price increases in Germany did not have a positive response. Many department stores in the country refused to comply with the price increase, leading Pepsico to freeze sales. This affected all the company's products, including drinks and snacks. While this may benefit the competition, it could harm the company itself in the long run. “Germany is undoubtedly the most challenging market for Pepsi in the world,” explained Pepsico CEO Torben Nielsen.

Price dispute between Edeka and PepsiCo

After about a year of agreement, the products were listed again at Aldi, but this is still not the case at Edeka. PepsiCo will no longer supply the Edeka group, Germany's largest food retailer, from the beginning of 2023. “Mars and Pepsi: It's good that you no longer supply us, because we don't have shelf space for outrageous prices!” Edeka wrote in a Facebook post.

However, PepsiCo defends the price increase by stressing that it would not translate into significantly higher profits. Despite the period of inflation, they have not increased their profit margins worldwide. Increasing competition from suppliers like Fritz-Kola is also challenging the company, so PepsiCo plans to invest more money in marketing. “If we don't invest in our brand year after year, at some point it won't be a brand,” Nielsen explained.

Not only is PepsiCo planning to raise prices, but German Coca-Cola bottler CCEP has similar plans. However, it remains to be seen how CCEP's price increase will affect Pepsi's plan, which originally aimed to make its prices equal to Coca-Cola's.