Loblaws brings Frito-Lay chips back to shelves, ending months-long price dispute


Loblaws will begin restocking Frito-Lay products on Monday, ending a months-long absence due to a pricing dispute between the companies, CBC News confirmed.

Frito-Lay – the maker of snack brands such as PepsiCo-owned Cheetos, Doritos, Lays, Ruffles and Sunchips – sparked an unexpected food battle in February when it abruptly cut off one of the biggest grocery chains of Canada because of its refusal to raise prices.

The company said in February it had taken an extraordinary step as it faced “unprecedented pressures from rising costs for items, including ingredients, packaging and transportation.” This was causing Loblaws to charge customers more for its products to recoup those higher costs, Frito-Lay said.

But Loblaws has refused to pass on those costs, with the grocery chain saying it’s “laser-focused” on keeping prices as low as possible.

The Financial Post was the first to agreement report between Loblaws and PepsiCo.

When contacted by CBC News, a Loblaws spokesperson offered no details on a potential deal, but said, “We are pleased to once again have a large assortment in our French fries department.”

“From the beginning, it was about providing value to our customers,” the spokesperson said in an email to CBC News on Saturday.

The Loblaws spokesperson added that stores should be fully stocked with Frito-Lay products before the next Easter weekend.