A shift in pricing strategy signals growing pressure on food companies as shoppers cut back and eating habits change.
PepsiCo will reduce the prices of some of its snack products in the US after criticism over earlier price increases and weaker demand linked to appetite-suppressing GLP-1 weight loss drugs. Items such as Doritos, Lay’s, and Cheetos will become cheaper from this week.
The company said it is “listening closely to customers” who are “feeling the strain” of the rising cost of living. It also acknowledged changing consumer behaviour as drugs such as Wegovy and Ozempic gain popularity and lead users to eat less.
PepsiCo said product size, ingredients, and taste will remain unchanged. It noted that prices are only recommendations and final shelf prices are set by retailers. The move was timed ahead of the Super Bowl on February 8, one of the biggest sales days for snack brands.
The group, which also owns Quaker Oats, Gatorade, and Lipton Iced Tea, reported revenue of $29.34 billion for the 3 months to December 27. Chief executive Ramon Laguarta said the company is “betting a lot on portion control” and will focus more on multipacks. More than 70% of its US food products are single-serve.
PepsiCo is also moving towards health-focused products, including Doritos Protein later this year. But it said affordability is its biggest challenge. “We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said US food chief Rachel Ferdinando. “Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can.”
Shares of PepsiCo rose nearly 4% in early trading on Tuesday. They had fallen about 5% in 2025 and have trailed Coca-Cola over the last 5 years. The company said 2026 will be a “record year of productivity savings”.
Despite easing inflation, food makers still face higher costs from tariffs on materials such as aluminium, rising wages, and extreme weather. Consumer anger has also grown over “shrinkflation”, where pack sizes fall but prices stay the same. In 2023, some PepsiCo products in Carrefour stores in France carried shrinkflation warning labels. In 2024, Carrefour stopped selling some PepsiCo products in parts of Europe due to what it called “unacceptable” price rises.
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