Pepsi is slashing chip prices after flood of consumer complaints
Price cuts for popular snacks announced after customer fury
- PepsiCo is set to reduce prices on popular chip brands like Lay's, Doritos, Cheetos, and Tostitos this year to regain customers lost due to previous price increases.
- The company had implemented significant price hikes, including a 4.5% global increase in the fourth quarter, which boosted revenue to $29.3 billion.
- However, these price increases led to weakened consumer demand, with snack volumes falling by 1% and North American beverage volumes dropping by 4% in the most recent quarter.
- The decision to cut prices and trim product offerings stems from a deal with activist investor Elliott Investment Management, which acquired a $4 billion stake and advocated for changes to address slowing growth.
- Alongside price reductions, PepsiCo plans to accelerate the launch of new products featuring simpler, more functional ingredients, such as Gatorade Lower Sugar and Simply NKD Cheetos and Doritos.
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