PepsiCo, hoping to jumpstart sales, has decided to lower snack prices, but experts told The Food Institute the action is unlikely to have a major impact – even though competitors are likely to follow suit.
“PepsiCo is taking a meaningful step to lower the price on many of our most loved snacks by up to 15%. This includes iconic favorites like Lay’s, Doritos, Cheetos, Tostitos and more, that have been bringing joy to families for decades,” the company said in a in a news release, adding, “and because retailers ultimately set their retail prices, shoppers may see even greater savings depending on the store.”
Good news for chip junkies, but little impact for the growing number of Americans taking GLP-1s for weight loss, who have been looking for more nutritious alternatives.
“Snacks and beverages are often among the first discretionary items to be cut” when budgets are tight, said Pascal Yammine, CEO of Zilliant, which focuses on pricing lifecycle management.
In its fourth quarter earnings report, Pepsico reported net revenue up 5.6% over the same quarter last year but overall annual revenue was up just 2.3%. The report also acknowledged consumer apprehension over inflation.
Louis Biscotti, managing director and national food and beverage industry leader at CBIZ, said it’s too early to determine if the cuts will be lasting or just part of a Super Bowl strategy.
“The weak demand might be linked to the ingredients in some of their popular brands. Consumers enjoy snacking but are turning more toward healthier options,” Biscotti said. “As Pepsi leads the market, competitors may also lower prices on snacks and other items.
“Profit margins are already tight, so while lower prices could increase sales volume, only those with strong margins are likely to sustain themselves. Others could be on a risky path.”
Jason Burke, founder of New Primal, a meat snack brand, agreed, saying price cuts sometimes just train consumers to wait for discounts.
“The brands that win will be the ones that protect brand equity while making the value equation clearer and easier for the consumer to understand,” Burke said.
Price matters right now, but it’s not the only driver for many consumers.
“What we’re seeing is that consumers aren’t just price-sensitive; they’re value-sensitive,” Burke noted. “Shoppers are still willing to spend, but they’re much more intentional. If the value proposition isn’t immediately clear – quality, ingredients, portion size or usage occasion – demand softens regardless of price.”
Food for Thought Leadership
In this episode of Food for Thought Leadership, host Chris Campbell is joined by food and nutrition expert Marie Molde to explore how health and wellness trends are reshaping the food and beverage industry heading into 2026.
