PepsiCo announced on Tuesday that the company is cutting prices by as much as 15 percent on popular products such as Cheetos, Doritos, Lay’s, and Tostitos.
That announcement came out the week of the Super Bowl, one of the biggest weekends for snack purchases, and amid consumers' voiced complaints over price increases. Such prices will reflect in stores right away, and PepsiCo Foods CEO Rachel Ferdinando wants customers to know they’ve been heard.
"We've spent the past year listening closely to consumers, and they've told us they're feeling the strain," Ferdinando said in PepsiCo’s announcement. "People shouldn't have to choose between great taste and staying within their budget."
PepsiCo noted that prices “may vary” by store since the retailers determine the price. That said, the company responded to customer feedback after years of price increases during and since COVID.
“For some consumers, low- and middle-income consumers, the biggest friction they have today in our category ... is affordability,” PepsiCo Chairman and CEO Ramon Laguarta said during a conference call on Tuesday. “So we have been testing multiple ways to give them affordability.”
PepsiCo’s snack sales haven’t fared as well during recent quarters, which included a 1 percent dip in volume for the past quarter. The company has already tested the price decrease in certain markets, and that made a difference.
"Volume return is pretty good, and that's what the category needs," Laguarta said.
Laguarta described the company’s strategy as “very surgical,” and he noted that “the biggest friction for higher frequency is price” in terms of sales. Investor Elliott Investment Management, which had a $4 billion stake in PepsiCo for 2025, made an agreement with PepsiCo in December 2025, which included cost-cutting.
PepsiCo’s decision occurred during an overall industry slowdown due to inflation and consumer choices, such as health consciousness. In addition, PepsiCo is refreshing brands that have simple ingredients and few artificial additives.
"We are betting a lot on portion control. Our multi-pack both in foods and beverages is going to be a very critical lever for us to grow," Laguarta said.