Customers have been complaining and PepsiCo wants them to know it’s listening.
The snack and beverage company said Tuesday it will reduce the suggested retail price for Doritos, Cheetos, Tostitos, Lays and other popular snack products by as much as 15 percent starting this week. Customers could, however, see differing prices in stores since retailers set their own prices.
“We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said Rachel Ferdinando, chief executive of PepsiCo Foods U.S., in a news release.
For years, grocery bills have eaten up an increasing share of consumers’ wallets. Since the start of the pandemic, grocery prices have surged30 percent, outpacing overall inflation’s increase of about 26 percent, according to the U.S. Bureau of Labor Statistics. The cost of snacks in December increased 2.2 percent year-over-year.
Facing these pressures, consumers are more willingto abandon brand loyalty and instead buy cheaper and often equal quality private-label alternatives. During the first 10 months of 2025, unit sales of store brands increased 0.3 percent while national brands fell 0.7 percent, according to the Private Label Manufacturers Association.
Snack food companies like PepsiCo are also vulnerable to the growing adoption of GLP-1 drugs, which are known to eliminate the “food noise” that can lead to bingeing and distracting thoughts about eating. GLP-1 users have reported cutting back on snacks and instead buying healthier items such as protein-rich drinks and yogurts or fruits and vegetables.
PepsiCo, which also produces Gatorade, Aquafina, Quaker and Smartfood, has seen sluggish snack sales for several quarters as consumers complain of rising prices. The company has made several moves recently to revamp its offerings, including acquiring Poppi and increasing its stake in the popular energy drink Celsius last year.
The announcement from the Purchase, New York-based company means customers could soon notice prices fall about 60 to 80 cents per bag. The company noted that products will remain the same quality and size.
“We’ll continue taking steps that keep our most loved brands within reach, while maintaining the same quality and same taste that consumers love,” Ferdinando said.
PepsiCo, which reported its fourth-quarter and fiscal year earnings on Tuesday, beat Wall Street’s expectations, with quarterly revenue hitting $29.34 billion. Fiscal year revenue increased about 2.2 percent to about $93.9 billion. PepsiCo’s stock price was up almost 4 percent by midmorning.
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