PepsiCo says it will reduce prices on some of its best-known snack brands, including Lay’s and Doritos, by as much as 15% in an effort to strengthen demand as consumers continue to pull back on spending.
The company’s move reflects the growing pressure facing major food manufacturers as shoppers become more selective, increasingly trading down to cheaper alternatives or private-label products after years of elevated grocery inflation.
PepsiCo’s North America snack business has been a key driver of growth, but executives acknowledged that price increases across the industry have strained household budgets. By lowering prices on signature products, PepsiCo aims to keep customers loyal while defending market share against rivals and store brands.
The reductions will apply to select items across its snack portfolio, including popular varieties of Doritos tortilla chips and Lay’s potato chips. The company expects the cuts to make its products more accessible and encourage consumers to return to purchasing snacks more frequently.
The decision comes as PepsiCo and other packaged-food companies confront shifting consumer behavior. Many shoppers have grown cautious, limiting discretionary purchases and focusing on value as higher costs for essentials squeeze budgets.
PepsiCo has also faced slower volume growth in recent quarters, with consumers buying fewer units even as companies raised prices. Cutting prices is seen as a strategy to balance profitability with maintaining demand.
The snack maker emphasized that it will continue investing in innovation and marketing while adjusting pricing to better match what shoppers are willing to pay. PepsiCo’s leadership said the company is closely monitoring consumer trends and will remain flexible in responding to changing economic conditions.
The price reductions highlight a broader industry shift as major brands look for ways to sustain sales growth without relying solely on higher prices. Analysts note that as inflation cools, companies may increasingly compete on affordability to retain customers.
PepsiCo’s snack portfolio, which also includes brands such as Cheetos and Tostitos, remains one of the company’s strongest business segments.
Source: Bloombert