Top Headlines

Feeds

PepsiCo Cuts U.S. Snack Prices Up to 15% Ahead of Feb 8 Super Bowl Amid Cost‑of‑Living Pressure

Updated (5 articles)
  • The price of Doritos in the US will drop by just under 15%
    Image: BBC
    The price of Doritos in the US will drop by just under 15% (Getty Images) Source Full size

PepsiCo Announces Up to 15% Snack Price Cuts On Feb 3 2026 the company revealed a 15% reduction in the suggested retail price of Doritos, Lay’s, Cheetos and other flagship snacks, with the new pricing expected to appear in U.S. stores that week [1][3][4]. The cuts target the Super Bowl on Feb 8, traditionally the biggest snack‑selling day of the year [3]. PepsiCo emphasizes that packaging, size and flavor remain unchanged, while final shelf prices stay at retailers’ discretion [3][4].

Consumer Pressure and Cost‑of‑Living Crisis Drive Decision Foods U.S. CEO Rachel Ferdinando said the company listened to shoppers who feel “the strain” of rising living costs and wants to keep iconic brands “within reach” [1][3]. CEO Ramon Laguarta added that PepsiCo is “betting a lot on portion control,” shifting focus to multipacks and health‑focused items as more than 70% of its U.S. portfolio is single‑serve [3]. The move follows backlash over recent price hikes and growing demand for appetite‑suppressing GLP‑1 drugs [3].

Elliott Management Influence and Sales Strategy Activist investor Elliott Management, which built a $4 billion stake, negotiated a turnaround plan that includes the price‑cut pledge as a corrective action [4]. North‑American snack volume fell 1% in recent quarters, prompting PepsiCo to test lower prices to boost purchase frequency [4]. Retailers may offer deeper discounts than the announced 15% because final pricing remains under their control [4].

New Health‑Focused Products Launch Simultaneously Alongside the price reductions, PepsiCo is accelerating launches of healthier options such as protein‑infused Doritos, avocado‑oil Lay’s, Simply NKD Cheetos and prebiotic‑fiber soda that sold out within 30 hours of its Black Friday release [1][4]. Functional‑ingredient products have shown strong sales, reinforcing the company’s shift toward “simpler ingredients” and “portion control” [1][3].

Market Reaction Shows Positive Share Movement The announcement lifted PepsiCo’s shares about 4% in after‑hours trading, while the firm reported $29.34 billion revenue for the quarter ending Dec 27 2025 [3]. Analysts note that earlier global price hikes raised net revenue 5.6% to $29.3 billion but weakened demand, making the current cuts a strategic effort to restore growth [1].

Sources

Timeline

Sep 2025 – Elliott Management takes a $4 billion stake in PepsiCo and pushes for a strategic reset, demanding actions to improve growth and profitability [4].

Q4 2025 – PepsiCo raises prices 4.5% globally (7% on North‑American beverages, 1% on snacks), lifting net revenue to $29.3 billion but dampening demand for its snack brands [5][1].

Dec 8, 2025 – PepsiCo announces it will cut nearly 20% of its product lineup by early 2026, accelerate new variants such as Doritos Protein and Simply NKD Cheetos, and targets 2‑4% organic revenue growth for 2026 [4].

Early 2026 (by early 2027) – PepsiCo plans to complete the product‑cull, redirect savings into marketing, value‑focused pricing and board‑level talent upgrades to drive growth [4].

Feb 3, 2026 – PepsiCo rolls out up to 15% price cuts on Doritos, Lay’s and Cheetos in U.S. stores, aiming to boost purchase frequency after a 1% dip in North‑American snack volume [3].

Feb 3, 2026 – CEO Ramon Laguarta says PepsiCo is “betting a lot on portion control,” shifting focus to multipacks and health‑focused items while over 70% of its U.S. portfolio remains single‑serve [1].

Feb 3, 2026 – Foods US chief Rachel Ferdinando states the cuts respond to shoppers “feeling the strain” of the cost‑of‑living crisis and demonstrate PepsiCo’s commitment to easing price pressure [1][5].

Feb 3, 2026 – The price reductions are linked to the Elliott Management turnaround plan, fulfilling a corrective action agreed with the activist investor [3].

Feb 3, 2026 – PepsiCo launches healthier snack extensions alongside the cuts, including Doritos Protein, fiber‑filled popcorn, avocado‑oil Lay’s, Gatorade Lower Sugar and the prebiotic Pepsi soda that sold out in 30 hours [5][1].

Feb 3, 2026 – PepsiCo’s shares climb about 4% after the price‑cut announcement, reflecting investor optimism about the affordability push [1].

Feb 8, 2026 – The Super Bowl serves as a peak snack‑selling day, with the newly discounted Doritos, Lay’s and Cheetos expected to drive strong sales volumes [1].

2026 (ongoing) – PepsiCo continues to roll out functional‑ingredient products and simpler‑ingredient snack lines, positioning them as core growth drivers for the year [5].

2026 – PepsiCo projects organic revenue growth of 2‑4% for the full year, building on the price‑cut strategy and product‑line simplification [4].

All related articles (5 articles)

External resources (1 links)