PepsiCo cuts product lines and lowers prices
PepsiCo announced it would cut nearly 20% of its products and lower prices as part of a new plan developed by activist investor Elliott Investment Management.
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PepsiCo wants to help you save some money on your Super Bowl party, so the food giant is lowering the prices of Lay’s potato chips and other snacks.
The snack and beverage company, which owns Mountain Dew, Gatorade, Muscle Milk, as well as Quaker Oats, announced on Tuesday, February 3, that it is cutting the prices of many popular snacks by up to nearly 15%. Lay’s, Cheetos, Doritos, Tostitos and more will all be marked down. The company said the new lower prices should start hitting shelves soon.
The price cuts come as consumers remain cautious about the economy and PepsiCo aims to expand sales in North America.
“We have listened carefully to our consumers over the past year, and they have told us they are feeling nervous,” Rachel Ferdinand, CEO of PepsiCo Foods USA, said in a news release. “The lower list price reflects our commitment to easing pressure wherever possible, because people don’t have to choose between great taste and staying within their budget.”
PepsiCo cuts prices on snacks like Lay’s potato chips and Doritos
PepsiCo is rolling out new lower asking prices nationwide this week. Price reductions of up to nearly 15% apply to brands such as Lay’s, Doritos, Cheetos, and Tostitos.
The size, quality and taste of the products will remain the same, the company said. And the price reductions will continue because “this is not a short-term price reduction; this is a long-term commitment to providing more value to consumers and a strong signal that PepsiCo understands what consumers are facing,” the company said.
Below are examples of price reductions provided to USA TODAY.
- Mr. Ray: PepsiCo is cutting the recommended daily price for an 8-ounce bag of Lay’s Classic Potato Chips by nearly 15%, from $4.99 to $4.29.
- Doritos: The recommended daily price for an 8.5-ounce bag of Doritos will drop approximately 13% from $6.29 to $5.49.
While grocery stores, supermarkets and other retailers set their own prices, “we expect these savings to be reflected in our stores and provide meaningful relief to consumers,” PepsiCo said in a statement to USA TODAY.
New products include Gatorade Raw Sugar and Doritos Protein
The price cuts come after PepsiCo suffered several quarters of weak sales in its key North American market and pressure from activist investor Elliott Management to cut costs and boost growth. PepsiCo has raised prices faster than its competitors since 2020 and now needs to lower them to maintain market share, according to Reuters.
PepsiCo plans to cut its U.S. product line by nearly 20% in the first half of 2026. At the same time, the company is trying to drum up consumer interest with new products made without artificial colors or flavors, such as Gatorade Low Sugar, Doritos and Cheetos NKD.
Doritos Protein Chips, Baked Lay’s Chips and Lay’s Kettle Chips with avocado or olive oil will also be available.
PepsiCo announced the price cuts after releasing its fourth quarter earnings report on Tuesday, February 3. The company reported sales of $29.34 billion for the three months ended Dec. 27, beating the $28.97 billion expected by economic analysts surveyed by S&P Global Market Intelligence. However, net profit was $2.5 billion, lower than analysts expected.
PepsiCo expects net revenue growth to be between 4% and 6% this fiscal year, the company said.
“It’s been a pretty strong quarter and the trends are likely pointing to a better direction for Pepsi,” said David Wagner, head of equities and portfolio manager at Aptus Capital Advisors, which owns PepsiCo stock. “But for stocks to really work, they need execution that relies on several drivers such as innovation, price reductions and productivity,” he told Reuters.
Contributed by: Reuters
Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: mike snyder & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com.
