PepsiCo Slashes Lay’s, Cheetos Prices by Up to 15%
PepsiCo has announced significant price cuts on its popular snack brands, including Lay’s and Cheetos. The company is reducing prices by up to 15%, a move aimed at responding to consumer feedback regarding rising costs.
Price Reductions on Popular Snack Brands
The price adjustments will take effect this week and are timed ahead of the Super Bowl. This decision comes amid growing pressure on food budgets, as shoppers shift to more affordable options.
Consumer Concerns Drive Change
Rachel Ferdinando, CEO of PepsiCo Foods U.S., emphasized the company’s commitment to addressing consumer concerns about pricing. “People shouldn’t have to choose between great taste and staying within their budget,” she stated.
- Price cuts affect brands like Lay’s, Doritos, Cheetos, and Tostitos.
- Reductions will be up to 15%.
- Changes commence ahead of the Super Bowl.
Market Context and Sales Trends
PepsiCo is not alone in this strategy. The company is responding to a trend where many shoppers prefer store-brand snacks over traditional brands due to rising prices. In the latest quarter, the volume of food sold in North America fell by 1%, even as overall sales increased.
CEO Ramon Laguarta highlighted affordability as a critical barrier for many consumers. In line with these changes, PepsiCo plans to reduce its product lineup by 20% to streamline operations and improve sales performance.
Broader Industry Adjustments
Other major food brands are also adjusting their prices. For example, General Mills has stated plans to discount around two-thirds of its product offerings to remain competitive.
- General Mills, known for Cheerios and Betty Crocker, is implementing price reductions.
- Retailers maintain final control over shelf prices.
Innovative Product Offerings
In addition to pricing strategies, PepsiCo is committing to innovation in its product lines. The company plans to introduce new versions of familiar snacks, including:
- Doritos enriched with protein
- Lay’s chips made with healthier oils, such as avocado or olive oil
- A low-sugar version of Gatorade without artificial ingredients
- A marketing revamp for Quaker to highlight fiber and whole grains
These developments underscore PepsiCo’s focus on balancing affordability with quality and innovation in the competitive snack food market.
