PepsiCo announced that it is taking “a meaningful step” to lower the prices of many of its snacks by up to 15%, including brands Lay’s, Doritos, Cheetos, Tostitos and more.
“We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” Rachel Ferdinando, CEO, PepsiCo Foods U.S., said in a press release. “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.”
Under suggested changes from PepsiCo, an 8-ounce bag of Lay’s classic potato chips could fall to $4.29 from $4.99. The suggested retail price for a 9.25-ounce bag of Doritos would fall about 80 cents to $5.49, according to the Wall Street Journal.
The snack manufacturer stated that though prices are going down, “the snacks themselves remain the same.”
According to the company press release, the pricing change is part of PepsiCo’s strategy to increase accessibility and offer more choices. The company noted that alongside price changes, it plans to continue refining its portfolio, “from thoughtful recipe enhancements, like the removal of artificial flavors and colors from Lay’s and Tostitos, to packaging updates aligned with evolving consumer preferences.”
During an earnings call this week, PepsiCo CEO Ramon Laguarta highlighted how the company aimed to attract consumers seeking healthier versions of its snacks and beverages, The New York Times reported.
“He pointed to early success in the company’s Simply NKD lines of Cheetos and Doritos, introduced in late November, that are made with no artificial flavors or dyes, giving them a pale color instead of their usual neon hues,” the NYT wrote.
The company hopes for a similar outcome later this year when it introduces a new version of Gatorade made with less sugar and no artificial colors or flavors.
“Lowering prices is one step—an important one—in our commitment to deliver for consumers and strengthen our brands for the future,” Ferdinando said. “We’ll continue listening, learning and taking action to keep our consumers at the center of everything we do.”