PepsiCo Cuts Prices on Doritos and Lays to Win Back Budget-Conscious Snackers
PepsiCo has bounced back strongly after slashing prices on popular snacks like Doritos and Lay’s, helping to win over customers frustrated by earlier price hikes.
The company reported an 8.5% rise in sales to $19.4 billion in the first quarter, alongside a 25% jump in operating profit to $3.2 billion. The turnaround followed targeted price cuts – some as high as 15% – rolled out ahead of the Super Bowl, a peak period for snack consumption.
CEO Ramon Laguarta said the company’s renewed focus on affordability played a key role in boosting performance, after losing some customers due to aggressive price increases in recent years.
Beyond pricing, PepsiCo is also adapting to changing consumer habits. The growing use of weight-loss medications is influencing how much people eat, pushing the company to focus more on smaller portions and multipack options.
According to analysts, affordability remains critical as consumers become more selective with spending, especially on non-essential items like branded snacks.
Looking ahead, PepsiCo is banking on major events like the upcoming FIFA World Cup – to be hosted across the US, Mexico, and Canada – to drive further engagement, including promotional campaigns tied to its snack brands.
The strategy signals a clear shift: in a tighter economy, even global giants must rethink pricing and portion sizes to stay in consumers’ baskets.
