The chips have been down for two months since PepsiCo stopped shipping its potato chip snacks to Loblaw Companies who refused to pay higher prices. Now, a deal has been struck to start shipping the popular Lays, Doritos, Tostitos lines in time to restock shelves for Easter weekend.

PepsiCo Foods, which produces Frito-Lay brands at five of its seven Canadian factories, reported that rising costs of labour, packaging, ingredients and freight led to the impasse. The high-profile case has underlined tensions along the supply chain which is experiencing unprecedented price pressures. 

The story of the two behemoths underscores the consolidated power of Canada’s grocers with Loblaw controlling 35 per cent of retail sales in the country across 2,400 store sites. Efforts continue to develop a Canadian retailer code of practice, but the March 31 deadline has passed with no updates on progress. 

Source:  Financial Post April 8, 2022 report