PepsiCo Vows to Lower Snack Prices Following Customer Complaints
PepsiCo said Tuesday it would reduce the cost of snacks and chips like Lay's, Doritos, Cheetos, and Tostitos following a year of customer complaints.
“We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said Rachel Ferdinando, CEO, PepsiCo Foods U.S. “Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can. Because people shouldn’t have to choose between great taste and staying within their budget.”
PepsiCo said it would lower the prices of those snacks "by up to nearly 15 percent" starting this week — and tied the announcement to Super Bowl Sunday, where Americans will likely be purchasing such snacks in droves. The decision is part of the company's broader strategy "to increase accessibility and offer more choices for consumers." The snacks will remain the same, but be "complemented by ongoing recipe and packaging updates" based on customer feedback, according to PepsiCo.
Total Retail's Take: When the largest snack company in the U.S. announces plans to voluntarily lower suggested retail prices by up to 15 percent, it's an indication that retailers and brands are responding to mounting consumer pressure created by tariffs and trade policy risk, transportation volatility, labor costs, and more. The consumer affordability ceiling is forcing retailers and brands to take action, and some are going public with it.
Tying the price reductions to a national event like the Super Bowl — scheduled for Sunday, Feb. 8 — is also a strategic marketing play. PepsiCo is acknowledging the communal, cultural moment and turning affordability into an emotional consumer story to help it sell more chips and snacks.
