PURCHASE, N.Y. — In a significant pivot aimed at regaining the favor of cost-conscious consumers, PepsiCo announced on Tuesday that it is slashing the prices of its most popular snack brands just days before Super Bowl LX. The move, which impacts heavyweights such as Cheetos, Doritos, Lay’s, and Tostitos, comes as the food and beverage giant acknowledges that years of aggressive price hikes have finally hit a “ceiling” for many American households.
The price reductions, which began rolling out to retailers this week, represent a cut of up to 15 percent on suggested retail prices. For a nation preparing for the single largest snacking day of the year, the timing is anything but accidental.
A “Surgical” Strategy for the Big Game
The announcement arrived alongside PepsiCo’s fourth-quarter 2025 earnings report. While the company exceeded Wall Street’s revenue expectations—bringing in $29.34 billion—the underlying data revealed a sobering trend: North American snack volumes fell by 1% as shoppers increasingly swapped brand-name favorites for cheaper private-label alternatives or skipped the snack aisle altogether.
“We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said Rachel Ferdinando, CEO of PepsiCo Foods U.S., in a statement. “Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can. People shouldn’t have to choose between great taste and staying within their budget.”
According to industry analysts, the price cuts are “surgical,” targeting specific bag sizes and high-traffic retailers where inflation has hit the hardest. For example, a standard 9.25-ounce bag of Doritos is expected to see a price drop of roughly $0.80, bringing the suggested price down to $5.49. Similarly, an 8-ounce bag of Lay’s Classic Potato Chips is slated to drop from $4.99 to $4.29.
Reversing the Inflationary Trend
For much of the post-pandemic era, PepsiCo and its competitors leaned heavily on price increases to offset rising costs for ingredients, packaging, and transportation. Between 2021 and 2024, many salty snacks experienced double-digit annual price increases. While this strategy initially protected profit margins, it eventually eroded consumer loyalty.
The current move is also part of a broader strategic shift. In late 2025, PepsiCo reached an agreement with activist investor Elliott Investment Management, which had pushed for more “value-focused” initiatives to improve the performance of the company’s North American food business. Part of this plan involves simplifying the product lineup—cutting roughly 20 percent of less-popular variations (SKUs)—to focus on the core brands that drive the most volume.
Not “Shrinkflation”
Crucially, PepsiCo has emphasized that these price cuts do not come with a reduction in product size. In a market where “shrinkflation”—reducing the weight of a product while keeping the price the same—has become a major point of contention for both consumers and politicians, the company is doubling down on transparency. The new packaging will explicitly note that the snacks remain the same size and quality, but at a lower cost.
| Brand | Old Suggested Price | New Suggested Price | Percentage Change |
| Lay’s Classic (8 oz) | $4.99 | $4.29 | ~14% |
| Doritos (9.25 oz) | $6.29 | $5.49 | ~13% |
| Cheetos / Tostitos | Varies | Up to 15% Lower | Up to 15% |
Looking Toward the Future
Market experts believe the results of this pricing experiment will be visible by the second quarter of 2026. While PepsiCo sets the suggested retail price, the final cost at the register is determined by individual retailers like Walmart, Kroger, and Target. However, the company expects that retailers will pass these savings on to consumers to drive foot traffic during the competitive Super Bowl shopping window.
“The value equation broke down for consumers over the last three years,” said Filippo Falorni, a U.S. beverages and snacks analyst. “This is a necessary step to reaccelerate volume growth. You can only raise prices so far before the consumer simply walks away.”
As fans stock up for Sunday’s game, PepsiCo is betting that a cheaper bag of Cheetos will be enough to bring them back into the fold—and keep them there long after the final whistle blows.
Sources and Links
- PepsiCo Official Press Release: PepsiCo makes iconic snacks more affordable ahead of Super Bowl
- Associated Press: PepsiCo lowers price for Lay’s, Doritos and other chips ahead of Super Bowl
- NPR: PepsiCo will cut prices on Lay’s, Cheetos by as much as 15%
- BNN Bloomberg: PepsiCo lowers snack prices to reaccelerate demand
- Washington Examiner: PepsiCo cuts prices for some snacks as affordability issues persist
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