Frito-Lay has told grocers it’s hiking prices for its snack foods by 10 to 11 per cent.
When it announced price increases last year, Loblaws refused and Frito-Lay products were off its shelves for weeks.
They reached an agreement, but no details were made public.
The Canadian Federation of Independent Grocers confirmed that PepsiCo-owned potato-chip manufacturer Frito-Lay imposed price increases on a number of its member stores this week.
Its members are all much smaller than the Canadian giants – Loblaws, Sobeys, Metro, Wal-Mart and Costco.
Frito-Lay is a division of PepsiCo and makes Lay’s, Doritos, Miss Vickie’s and Tostitos snacks.
Grocers said they are facing other similar cost increases that they will be passing through to customers, citing imported fresh produce and beef as examples.