Home / Business and Economy / PepsiCo Slashes Snack Prices Amid Consumer Outcry
PepsiCo Slashes Snack Prices Amid Consumer Outcry
3 Feb
Summary
- PepsiCo to reduce prices on snacks by up to 15%.
- Consumer complaints about high costs prompted the price cuts.
- Suggested retail prices for Lay's and Doritos will decrease.
PepsiCo is implementing price reductions of up to 15% on several snack items, including Lay's potato chips and Cheetos. This decision follows numerous consumer complaints regarding the escalating cost of these popular snacks, with shoppers finding them increasingly unaffordable.
Company executives acknowledged that consumers need better value, noting that while inflation and production costs had driven prices up, sales growth had since decelerated. PepsiCo is advising retailers to lower prices, a suggestion expected to be adopted to appeal to budget-conscious consumers. For instance, an 8-ounce bag of Lay's could soon be priced at $4.29, down from $4.99.
This affordability initiative is also linked to PepsiCo's commitment to improving its food business performance, as agreed upon with activist investor Elliott Investment Management in December. The company is achieving these price adjustments by identifying internal cost savings, such as closing manufacturing plants and streamlining product lines. Other food companies are also reportedly lowering prices to regain consumer trust.
