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As Supply Costs Rise, Snack Maker Monitors Frito-Lay’s Pricing Tactics

December 17, 2021: 12:00 AM EST
Like many businesses in the U.S., Better Made Snack Foods of Detroit feels the pinch of supply chain disruptions and inflated prices for potatoes, oil, and other ingredients during the pandemic. The company knows it has to hike prices at some point, but it is waiting to see how much Texas-based, market leader Frito-Lay raises prices on Ruffles and Lay's potato chips. "If you raise your price over what the major national brand is selling for, you're not going to be in a very good marketplace," said company President David Jones. "So we've got to see what the national leader is doing and then we follow right behind them." Better Made, which distributes snacks in 20 states, says prices have increased 20 percent for potatoes, 30 percent for seasonings, 20 to 30 percent for corrugated cardboard, and 158 percent per pound for cotton seed oil.
"Why We'll Pay More For Detroit's Better Made Chips", Deadline Detroit, December 17, 2021, © Deadline Detroit, Inc.
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