PepsiCo cuts prices of Cheetos, Doritos and other snacks
PepsiCo is lowering the prices of its Cheetos, Doritos, Lays and other snack brands by up to 15%, saying it wants to bring "relief" to consumers facing an affordability crunch.
The food and beverage company said the price cuts — announced just before this weekend's Super Bowl game — are an effort to respond to the financial strain facing many consumers, who conveyed that "rising everyday costs are making their daily decisions harder."
The new pricing will start rolling out across the U.S. this week, according to PepsiCo.
The move comes amid a pullback in demand from consumers after PepsiCo instituted a series of price hikes. In the fourth quarter, PepsiCo increased beverage prices by 7% in North America, while its snack prices were up 1%. Food manufacturers like PepsiCo are also contending with the impact of appetite-suppressing weight-loss drugs, which are hurting demand for snacks.
Which snacks are getting cheaper?
PepsiCo said it will lower the suggested retail price on each of the following snacks by up to 15%, while noting that retailers can further lower the cost:
- Cheetos
- Doritos
- Lay's
- Tostitos
Why is PepsiCo cutting prices?
PepsiCo Foods U.S. CEO Rachel Ferdinando said the move is part of the company's wider push to make products more affordable for consumers.
"We've spent the past year listening closely to consumers, and they've told us they're feeling the strain," she said in a statement on Tuesday. "Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can."
No other changes are being made to the snacks. Packaging and quantities will remain the same, the company noted.
PepsiCo CEO Ramon Laguarta said in a call with Wall Street analysts on Tuesday that the company tested price cuts in some markets last year and found that it boosted sales.
"Volume return is pretty good, and that's what the category needs," Laguarta said.
