Higher product prices have crossed the threshold of Pepsi as it has for Coca-Cola and other consumer staples businesses, as higher input costs have offset top line growth.

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As a result, the company says it will raise prices to offset higher input costs.

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The company had joined consumer products maker Kimberly-Clark, which reported earnings Monday, in raising prices to offset higher input costs.

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However, it remains to be seen how customers will react to possible increases in merchandise prices over the next few quarters, as retailers raise prices to offset heightened input costs.

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Profits were offset by higher input costs on materials like wood pulp during the quarter.

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Thus, we expect the margins for its company-operated stores to remain relatively unchanged since a rise in comparable sales should help offset the increase in input costs.

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And in the developed world, farmers now have access to an explosion of information on the internet, from seed companies, from input suppliers, and others which has helped to offset the shrinking funding for extension services.

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Profits were offset by monetary declines in Venezuela and soft demand in North American markets, in addition to higher input costs for materials.

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