Loblaws bringing Frito-Lay chips back to shelves, ending months-long pricing dispute

Loblawswill start restockingFrito-Lay products on Monday, ending a months-long absence due to a pricing dispute between the companies,CBC News has confirmed.

Frito-Lay the PepsiCo-ownedmaker of snack brands such asCheetos, Doritos, Lays, Ruffles and Sunchipsset off an unexpected food fight in February when itabruptly cut off one of Canada's biggest grocery chainsbecause of its refusal to raise prices.

The company said in February it took the extraordinary step because it is facing "unprecedented pressures from rising costs of items, including ingredients, packaging and transportation." Itwas pushing Loblaws to charge customers more for their products in order to recoup those higher costs, Frito-Lay said.

But Loblaws refused to pass on those costs, with the grocery chain saying it is "laser focused" on keeping prices as low as possible.

The Financial Post was first to report of a deal betweenLoblawsand PepsiCo.

When contacted by CBC News, a Loblawsspokesperson gave no details about any deal but said "we're happy to once again have a wide assortment in our chip aisle."

"All along, this was about providing value to our customers," the spokesperson said in an email to CBC News on Saturday.

The Loblaws spokesperson added that stores were expected to be fully stocked withFrito-Lay products before the upcoming Easter weekend.