Additional Coverage:
- PepsiCo says it’s cutting prices on snacks like Lay’s and Doritos by up to 15%, as consumers feel ‘stretched’ (businessinsider.com)
PepsiCo Chips In: Snack Giant Slashes Prices on Popular Brands
Local snack aficionados and budget-conscious shoppers alike are getting some good news this week as PepsiCo, the powerhouse behind beloved brands like Lay’s and Doritos, announces significant price cuts on select products. The move, which could see prices drop by up to 15%, is a direct response to consumers feeling the pinch of persistent high prices.
Starting this week, you might notice your favorite bags of Lay’s, Doritos, Cheetos, and Tostitos sporting a lighter price tag. This isn’t a blanket discount, however. PepsiCo CEO Ramon Laguarta stated the company will be “very surgical,” targeting products where price is the biggest barrier to more frequent purchases.
“We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” explained Rachel Ferdinando, CEO of PepsiCo Foods US, in a statement. This listening tour appears to have paid off, as the company’s fourth-quarter results largely surpassed analyst expectations, sending shares up about 5% on Tuesday morning.
While overall inflation has eased since the post-pandemic surge, many still report feeling the squeeze at the grocery store. This creates what economists call a “K-shaped economy,” where higher-income consumers maintain their spending habits while lower and middle-income households continue to tighten their belts. PepsiCo’s 2026 outlook reflects this reality, anticipating that these consumers will remain “stretched and choiceful” when it comes to their grocery carts, including snacks.
Beyond the price cuts, PepsiCo is also refreshing some of its biggest brands, aiming to address health concerns. For example, the company is re-launching Lay’s chips with a focus on their lack of artificial ingredients, just in time for the Super Bowl. Laguarta expressed confidence that this health-conscious marketing will “bring consumers to the brand.”