New York, April 24 - PepsiCo Inc is taking more prices increases than it originally thought this year, as it seeks to offset commodity costs that are still soaring, its chief financial officer said on Thursday.
While reporting first-quarter earnings, the soft drink and snack maker said it expected commodity costs to increase 9 to 10 percent this year, up from its prior forecast of around 6 percent.
Yet PepsiCo maintained its prior 2008 earnings outlook. CFO Richard Goodman told Reuters in an interview that the company expects to maintain its earnings target by controlling expenses and raising prices.
Goodman also said he expects the U.S. beverage business to have low to flattish growth for the balance of this year, as there has been a slowdown in sales of unflavored bottled water.