PepsiCo plans to reduce the suggested retail price of its core snack products by up to about 15 per cent in the United States after sustained complaints from shoppers about high prices.
The cuts for key brands such as Lay’s, Doritos, Cheetos and Tostitos are expected to appear on shelves this week as retailers adjust their pricing, according to industry reports and company statements.
The move comes amid ongoing consumer frustration with rising grocery costs and follows a period of extended price increases on packaged foods.
What’s behind PepsiCo’s price reduction move
PepsiCo executives have acknowledged that consumers — particularly cost-sensitive, low- and middle-income households — have expressed concern about the affordability of snack products.
Retail prices for salty snacks climbed significantly in recent years, contributing to reduced purchase frequency and a shift toward cheaper private-label alternatives. In response, the company says it has listened to feedback and decided to lower suggested prices to restore value and support demand for its products.
While PepsiCo sets suggested retail prices, actual shelf pricing is ultimately determined by individual retailers, which may influence how quickly discounts reach shoppers.
Impact on the snacks market and retail pricing
The planned price adjustments arrive at a time when many packaged food makers are re-evaluating pricing strategies after inflationary cost pressures eased.
Sales volumes in the North American snacks business have been under pressure, with recent quarterly figures showing declines in units sold.
Analysts and industry observers see the price cuts as part of a broader attempt to boost volume growth and compete with private-label and discount brands that have gained market share.
Retailers may use the pricing shift to attract footfall in grocery and convenience channels, though the extent of consumer savings will vary by store and region.
What this means for retailers and brand owners
For grocery retailers and category managers, the PepsiCo price cuts could influence snack category pricing dynamics and promotional planning for the coming months.
Lower suggested retail prices may prompt competitive responses from other branded manufacturers and private-label ranges.
Buyers and merchandisers should monitor how quickly retailers implement the new pricing and how it affects sales patterns ahead of key seasonal demand periods.
Industry stakeholders also note that strategic price adjustments have become a key tool for maintaining relevance with value-focused consumers in an environment where shoppers remain cautious about discretionary spending.
