Frito-Lay and Loblaw resolve months-long price dispute

Frito-Lay brand snacks will be back on Loblaw shelves next week, ending a months-long dispute over pricing, according to the Financial Post.

PepsiCo-owned Frito-Lay--the maker of brands like Cheetos, Doritos, Lays, Ruffles and Sunchips--halted shipments to Loblaw back in February after the grocer refused to raise prices.

This has left chip and snack food aisles of many Loblaw stores less full than usual or stocked with the retailer's house brands, such as President's Choice or No Name.

"We’re pleased to share that we have resolved the ongoing disruptions with Pepsi-Co Foods," Loblaw wrote to stores on April 8, in an email obtained by the Financial Post. "We encourage stores to continue to support any brands they added to their assortment during the service disruption with Frito Lay."

The rift between Frito-Lay and Loblaw exposes deepening tensions in Canada's food industry that many experts say could worsen as supply chain challenges and inflation continue.

More to come ...