PepsiCo is to cut prices across core brands including Doritos and Lay’s by up to 15% in the US, following consumer backlash to previous increases.
The snacks and beverage maker said “extensive consumer feedback around affordability limitations” in the second half of 2025 was behind the move.
“We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said Rachel Ferdinando, CEO of PepsiCo Foods US. “Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can.”
As prices were ultimately set by retailers, consumers “may may see even greater savings depending on the store,” PepsiCo added.
Price hikes have helped PepsiCo grow revenues in recent quarters despite sliding volumes. In its financial fourth quarter, PepsiCo increased prices by 4.5% globally, helping sales climb 2.1% organically to $29.3bn, ahead of analyst forecasts.
Full-year sales, meanwhile, climbed 1.7% organically to $94.0bn.
Volumes of PepsiCo snacks slid by slid by 2% across both the quarter and the full year, however, as consumers struggling with inflation pulled back on consumption. Beverage volumes, meanwhile, rose 1%, with a 4% decline in the group’s PepsiCo Beverages North America unit offset by rises in volumes internationally.
Earnings per share, meanwhile, were flat year on year, having climbed 11% organically in the quarter.
The announcement comes with PepsiCo currently working to cut costs across the business, amid pressure from activist investor Elliott Management.
The group has promised to slash 20% of its North American foods business’ SKUs, “aggressively” reduce operating costs and “carefully evaluate” the refranchisement of its US bottling in concessions made to Elliott following several quarters of weak sales in North America.
It has also sought to “restage” global brands Lay’s, Tostitos, Gatorade and Quaker with an emphasis on cleaner ingredients, and increase its exposure to fmcg growth areas including hydration, protein and fibre.
PepsiCo reaffirmed its FY2026 guidance of revenue growth of 2% to 4%, and core earnings per share growth of 5% to 7% on Tuesday (3 February).
Shares in PepsiCo were up 3.5% in early morning trading.
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