HARRISON, New York: As demand remained steady despite multiple price increases, Pepsi said this week that it was planning “modest” price rises in 2024.

The snacks and beverages giant also raised its 2023 profit forecast for a third consecutive time.

In an interview with Reuters, Pepsi’s Chief Financial Officer Hugh Johnston said, “As we get into next year, there will be some modest level of price increases coming.”

Average prices jumped 11 percent in the quarter ending on September 9, while organic volume dropped 2.5 percent.

Brian Mulberry, client portfolio manager at Zacks Investment Management, said, “The profit margin gives PepsiCo the room to either keep the prices the same or maybe even reduce them, but clearly, in the short-term, the company has not gotten to that point where it feels the need to reduce prices drastically.”

Zacks has a one percent stake in PepsiCo.

Meanwhile, Johnston also said that the company was “not yet seeing any impact” from the popularity of weight-loss drugs, which could change consumption trends.

The surge in demand for such drugs, which include Wegovy and Ozempic, has caused worries about a likely hit to the sales of major packaged food companies.

Pepsi and rival Coca-Cola have benefited from their near-domination of the global carbonated drinks market and cost-conscious consumers spending on products categorized as “affordable luxuries.”