PepsiCo, the company responsible for iconic snacks like Cheetos and Lay’s, recognizes the financial pressure many shoppers face and is responding accordingly.
This week, they will be reducing the suggested retail prices of some snacks, including Lay’s, Doritos, Cheetos, and Tostitos, by as much as 15%, as announced on Tuesday.
“Over the past year, we have been attentive to consumer feedback, which clearly indicates they are feeling the financial strain,” said Rachel Ferdinando, CEO of PepsiCo Foods US, in a statement.
These price reductions will not apply to every product, as CEO Ramon Laguarta indicated during the company’s fourth-quarter earnings call.
PepsiCo will adopt a precise approach, focusing on products where price represents a significant barrier to increased purchases, Laguarta elaborated.
In fact, PepsiCo’s fourth-quarter performance exceeded most analysts’ expectations, with shares of the beverage and snack giant rising approximately 5% on Tuesday morning following the earnings report.
While inflation has moderated for various goods, including food, shoppers still report high prices at grocery stores and restaurants.
This financial strain is particularly pronounced among lower-income consumers, while wealthier shoppers have largely maintained their typical purchasing habits, contributing to what analysts call a K-shaped economy.
Looking ahead to 2026, PepsiCo expects that middle- and lower-income consumers will continue to feel the pinch, carefully selecting grocery items, including snacks, according to Laguarta.
In addition to adjusting prices, PepsiCo is relaunching several of its flagship brands to better align with consumer concerns about health. This effort includes promoting Lay’s chips as a snack free from artificial ingredients, strategically timed for the upcoming Super Bowl on February 8, Laguarta mentioned.
“We believe this initiative will attract more consumers to the brand,” he added.
