PepsiCo Cuts Snack Prices Up to Nearly 15% To Bolster Sales
PepsiCo announced Feb. 3 that suggested retail prices for Lay’s, Doritos, Cheetos and Tostitos will be reduced by up to nearly 15% starting this week.
Overview
PepsiCo announced on Feb. 3 that it will lower suggested retail prices on Lay’s, Doritos, Cheetos and Tostitos by up to nearly 15%, with new prices expected to begin rolling out in U.S. stores this week, the company said.
The cuts follow fourth-quarter results showing net revenue rose 5.6% to $29.34 billion for the period ended Dec. 27, while North American snack volumes fell 1% and North American beverage volumes dropped 4%, PepsiCo reported.
Ramon Laguarta, PepsiCo chairman and CEO, said in a Feb. 3 investor call that affordability is the 'biggest friction' for low- and middle-income consumers and that price tests in the second half of last year helped drive volume returns, he said.
Elliott Investment Management took a $4 billion stake in PepsiCo in September, records show, and PepsiCo said it will trim nearly 20% of U.S. product offerings in the first half of 2026 as part of measures to restore North American growth.
PepsiCo said it will accelerate launches including Gatorade Lower Sugar, Doritos Protein and Pepsi Prebiotic, expects net revenue growth of 4% to 6% this fiscal year, and cautioned that retailers control final shelf pricing, the company said.
Analysis
Center-leaning sources frame PepsiCo’s price cuts as a consumer-relief move positioned against business realities — highlighting company statements about easing strain while foregrounding analyst and investor pressures, GLP‑1-driven demand shifts, and Super Bowl timing. They rely on corporate quotes and financial metrics, with limited independent retail or consumer perspectives.
Sources (10)
FAQ
Lay’s, Doritos, Cheetos, and Tostitos will have suggested retail prices reduced by up to nearly 15%.
The new suggested retail prices begin rolling out in U.S. stores this week, starting from February 3, 2026.
PepsiCo is responding to consumer complaints about rising costs and affordability issues for low- and middle-income consumers, following price tests that boosted volumes.
PepsiCo is lowering suggested retail prices, but retailers control final shelf pricing and may offer even greater savings.
PepsiCo's Q4 net revenue rose 5.6% to $29.34 billion, but North American snack volumes fell 1% and beverage volumes dropped 4%.
History
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