PepsiCo has announced a significant price reduction for popular brands like Doritos and Cheetos, with discounts of up to 15%. This move aims to stimulate growth and attract back consumers who have been cautious due to inflation.
The company tested deeper price cuts in the latter half of 2025 and observed an increase in purchase frequency among shoppers. As a result, PepsiCo is now implementing broader price reductions across the U.S., offering more affordable options for brands like Lay’s, Tostitos, Doritos, and Cheetos.
Rachel Ferdinando, CEO of PepsiCo Foods U.S., emphasized the importance of listening to consumers and addressing their financial concerns. Lowering prices is a key step in the company’s commitment to delivering value and strengthening brand loyalty.
Stephen Schmitt, PepsiCo’s CFO, described the price cuts as a proactive measure to drive growth and enhance competitiveness in the snacks market. The company anticipates positive impacts on both sales volume and revenue.
Following a trend in the industry, PepsiCo joins other food companies in reducing prices to stimulate demand. General Mills, for example, saw an increase in product volume after implementing price cuts on the majority of its grocery items in North America.
Recent years have seen food companies raising prices to offset costs, but consumers, particularly those in lower income brackets, have been resistant to these changes. This has led to a decline in purchase volumes and a shift towards more affordable alternatives.
PepsiCo’s decision to lower prices aligns with efforts to streamline operations and improve profitability. By implementing cost-cutting measures, the company aims to generate savings that can be reinvested into pricing strategies.
Alongside price reductions, PepsiCo is focusing on product innovation to meet changing consumer preferences. The company has introduced healthier versions of popular snacks, incorporating trendy ingredients like avocado oil and protein enhancements.