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Wednesday, January 15, 2025

PepsiCo Says Gatorade Hampered by Supply Shortages

  • PepsiCo is set to raise its prices.
  • The increase will offset the costs of supply chain issues.
Jeff Hanisch-USA TODAY Sports/Design: Alex Brooks

PepsiCo is set to raise its prices to offset the costs of supply chain issues, which include shortages of plastic bottles for Gatorade sports drinks. 

The food and beverage giant has dealt with higher transportation and commodity costs amid the pandemic and says it will likely integrate a price hike in the fiscal first quarter of 2022. Sales, however, remain strong. 

PepsiCo raised its full-year forecast for 2021 on Tuesday following an impressive third-quarter earnings report. Revenue jumped 11.6% year-over-year to $20.19 billion, surpassing Wall Street estimates of $19.39 billion.

It now expects total revenue this year to increase by 8%, up from a previous estimate of 6%.

  • Gatorade holds a 67.7% market share of the U.S. sports drink market, per Euromonitor.
  • The NBA renewed its official soft drink and chip partnership with PepsiCo earlier this year.
  • In its last major acquisition, the company acquired Rockstar Energy in March 2020 for $3.85 billion.  

NBA superstar LeBron James finalized a multiyear endorsement deal with PepsiCo in March, leaving Coca-Cola after 17 years in a move first reported by Front Office Sports. Terms of the deal were not disclosed. 

Despite supply chain setbacks, PepsiCo CFO Hugh Johnston told Reuters a shortage of products like Gatorade at supermarkets is not expected.

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