PepsiCo Moves to Cut Snack Prices After Shoppers Push Back on Costs

PepsiCo has announced plans to reduce the prices of several of its best-known snack brands, including Doritos, Lay’s and Cheetos, in response to growing consumer frustration over rising food costs.

In a statement released on Tuesday, PepsiCo Foods US chief executive Rachel Ferdinando said the company had spent the past year engaging with customers who consistently raised concerns about affordability. She said the decision to lower suggested retail prices by as much as 15% was intended to ease some of the financial pressure facing households.

Shoppers across the United States are expected to begin seeing the new prices on shelves this week, just ahead of the Super Bowl, one of the busiest periods of the year for snack purchases. Products affected by the change will feature updated packaging highlighting the reduced prices.

Food prices have been a major point of tension for consumers, particularly as grocery costs have steadily climbed in recent years. Branded snack makers like PepsiCo have also faced increasing competition from lower-priced private-label products, as shoppers look for cheaper alternatives.

PepsiCo cautioned that while it has lowered its suggested retail prices, final pricing decisions remain with individual retailers. As a result, in-store prices may differ, though the company said some shoppers could see even deeper discounts depending on where they shop. Major grocery chains, including Walmart, Kroger and Target, have been contacted for comment.

The price cuts follow recent discussions between PepsiCo and activist investor Elliott Management, which holds a roughly $4bn stake in the company. As part of efforts to improve performance, lowering prices was identified as one of several measures aimed at revitalising the business.

In its latest earnings report, PepsiCo said trial runs of the lower pricing were designed to encourage more frequent purchases, adding that consumers responded positively during testing. Snack sales in North America have slowed in recent quarters, with volumes declining by 1%, according to figures released alongside the announcement.

Alongside the pricing changes, PepsiCo is also expanding its product range, introducing new offerings such as protein-enriched Doritos, popcorn with added fibre and Lay’s chips made using avocado and olive oils, as it looks to adapt to shifting consumer preferences.