PepsiCo is cutting prices on brands including Doritos and Cheetos by up to 15% as it seeks to reinvigorate growth and win back inflation-wary consumers who have slashed their spending.
Executives at the beverage and snack giant said the company: We tested deeper price reductions. In the second half of 2025, we saw these initiatives increase the frequency with which shoppers purchase. PepsiCo now releases b.Loaders are dropping prices across the U.S. this week, offering “greater affordability” on certain pack sizes from brands like Lay’s, Tostitos, Doritos and Cheetos.
“We’ve listened closely to our consumers over the past year, and they’ve told us they’re feeling the pressure,” said Rachel Ferdinando, CEO of PepsiCo Foods US. said in the release. “The price reduction is one step and an important step in our commitment to providing products to consumers and strengthening the brand for the future.”
Stephen Schmitt, PepsiCo’s Chief Financial Officer (CFO) Features reduced prices The company said it is making an “aggressive play” and the CPG giant is “very excited about the initiative and the benefits it will bring in both volume and revenue growth.” The company was also optimistic that the cuts would make its snacks business more “competitive.”
PepsiCo is the latest large food company to cut prices to boost growth. General Mills, maker of Cheerios and Nature Valley bars, said in December: cut the price by nearly two-thirds Product production increased due to increased grocery sales in North America.
Food companies have been raising prices for years to offset rising costs and are optimistic that loyal consumers will follow suit.
But many shoppers who are dealing with higher prices across the board for everyday essentials are “being left behind,” said Brian Choi, managing partner and CEO of The Food Institute. said in a recent interview. High prices have been shown to be particularly burdensome for low- and middle-income consumers.
Most food companies have reported declining sales as people buy less or switch to cheaper private brand options. During fiscal year 2025, PepsiCo’s food segment sales fell 2%; the company said Tuesday.
The price cut comes as pressure from China increases. activist investorThis led PepsiCo to cut costs and take other drastic measures to cut costs and improve profit margins. Last year, PepsiCo announced it was closing its snack factories. Florida, New York and California and planned Reduce the number of products It’s sold out by almost 20%..
The savings generated through cost cuts will help fund price cuts, the company said.
But PepsiCo isn’t just relying on lower prices to stimulate demand. The New York-based company has a substantial innovation pipeline that is reshaping many of its core brands to meet consumer needs for health and wellness.
PepsiCo announced Cheetos and Doritos versions Without artificial colors, Some products use olive oil or avocado oil. Promoted the launch of snack options using trendy ingredients, such as protein-enhanced Doritos. The beverage business also responded by launching ‘new products’. Pepsi with prebiotics.
