PepsiCo to Cut Prices on Snacks Like Doritos by Up to 15% to Appease Customers Pinched by the K-Shaped Economy

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After years of price hikes and many complaints, PepsiCo is finally listening to its customers. The Doritos maker announced yesterday it will cut prices on its most popular snacks by up to 15% as early as this week to appeal to Americans feeling the pinch in a K-shaped economy.

Now, the pain from a bag of Flamin’ Hot Cheetos will still be there after you eat them, but it’ll be less when you’re buying them. It’s a new direction:

  • PepsiCo’s average product price rose about 4% over the last two years, after skyrocketing by double-digit percentages in 2022 and 2023.
  • Since 2020, retail prices for salty snacks across the industry were up 38% as of June 2024, according to Jefferies analysts.

Market adjustment: PepsiCo CEO Ramon Laguarta said this was a direct response to low- and middle-income consumers either skipping snacks or buying cheaper store-brand options. The company was also swamped with complaints about high prices via voicemails and emails.

No shrinkflation: Sizes will stay the same, but the new price tag will be advertised at a lower price.

out: The price reductions line up with this weekend’s Super Bowl, a big day for snacking. During the 2024 big game, Americans spent $670 million on snacks—tortilla chips were among the biggest sellers.—DL

This report was by .