Shoppers’ Voices Drive Bold Response (Image Credits: Unsplash)
PepsiCo announced reductions in suggested retail prices for several flagship snack brands, addressing widespread consumer concerns over affordability.
Shoppers’ Voices Drive Bold Response
Executives at PepsiCo Foods U.S. fielded numerous complaints through voicemails, emails, and direct conversations over the past year.[1][2]
Customers expressed strain from inflation-driven hikes that made routine purchases feel burdensome. Rachel Ferdinando, CEO of PepsiCo Foods U.S., noted the impact: “We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain.”[3][1]
The company tested lower prices in select markets. Feedback showed enthusiasm, prompting a nationwide rollout to boost purchase frequency.[2]
Exact Price Drops on Popular Bags
Suggested retail prices now reflect cuts of up to nearly 15% on unchanged product sizes and flavors.[3][4]
Retailers determine final shelf prices, which could offer even deeper discounts. Here are examples for key items:
| Product | Size | Previous Price | New Price | Savings |
|---|---|---|---|---|
| Lay’s Classic Potato Chips | 8 oz | $4.99 | $4.29 | $0.70 |
| Doritos | 9.25 oz | $6.29 | $5.49 | $0.80 |
Flamin’ Hot Cheetos and Tostitos also qualify for similar reductions.[4]
Broader Strategy Fuels Affordability Push
PepsiCo funded these changes partly by closing manufacturing plants and trimming underperforming lines.[4]
North American snack volumes dipped 1% in the latest quarter, even as overall revenue grew modestly.[1][2]
Salty snack retail prices had climbed 38% from 2020 levels by mid-2024. CEO Ramon Laguarta acknowledged the issue: snack prices grew “a little more expensive than we would like it to be.”[4]
The firm also introduced innovations like protein-enriched Doritos and Lay’s varieties with avocado or olive oils.[2]
Rollout Aligns with Super Bowl Excitement
New pricing and updated packaging hit stores across the United States this week.[3][1]
The timing precedes the Super Bowl on February 8. Ferdinando emphasized ongoing commitment: “Lowering prices is one step – an important one – in our commitment to deliver for consumers and strengthen our brands for the future.”[1]
This move signals a pivot toward value in a competitive landscape dominated by store brands. Shoppers stand to benefit immediately from more accessible favorites.
Key Takeaways
- Up to 15% off Lay’s, Doritos, Cheetos, Tostitos starting this week.
- Examples: 70 cents saved on 8-oz Lay’s; 80 cents on 9.25-oz Doritos.
- Driven by consumer feedback and sluggish sales volumes.
What changes will you notice at your local store? Share your thoughts in the comments.
