PepsiCo announced Tuesday that it is lowering suggested retail prices on popular snack brands, including Cheetos, Doritos, Lay's, and Tostitos, by up to 15% nationwide. The company said the move aims to provide “relief” to consumers facing rising everyday costs and an affordability crunch that has slowed demand for snacks following previous price increases.
The price reductions, rolling out this week ahead of Super Bowl weekend, respond directly to consumer feedback that financial strain is affecting daily decisions. PepsiCo Foods U.S. CEO Rachel Ferdinando said, “We've spent the past year listening closely to consumers, and they've told us they're feeling the strain. Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can.” The company noted that retailers may further lower prices at their discretion, with no changes to packaging, quantities, or product formulations.
The move follows a period of price increases, with beverage prices up 7% and snacks up 1% in the fourth quarter, which contributed to softer demand, compounded by the impact of appetite-suppressing weight-loss drugs. CEO Ramon Laguarta told Wall Street analysts Tuesday that price-cut tests in select markets last year delivered strong volume returns, confirming the category needed adjustment. “Volume return is pretty good, and that's what the category needs,” he said.
Timing the reductions with the Super Bowl positions PepsiCo to boost sales during one of the biggest snacking events of the year while addressing consumer pushback against sustained high prices.
