Frito-Lay's standoff with Loblaw drags on, opening a window on how Big Food is fighting inflation — via financialpost
The standoff has opened a window into the private negotiations between grocers and suppliers, at a time when both sides are grappling with the most intense period of inflation in a generation. It’s not totally uncommon for suppliers to stop shipments when negotiations break down, though the disputes are usually resolved within a matter of days or weeks — often before consumers start noticing.
PepsiCo’s food division is made up of Quaker Oats Co. and Frito-Lay, an expansive roster of products that includes Lays, Doritos, Tostitos, Ruffles and Miss Vickie’s.on its store brand of chips, as well PepsiCo’s competitors, including Old Dutch Foods Inc. and Neal Brothers Foods Inc., based just outside of Toronto in Richmond Hill.
But withholding shipments is becoming more common, as cost pressures build up throughout the supply chain, said Graydon of FHCP. “It’s brutal out there,” he said.
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