PepsiCo has announced significant price reductions across its popular snack portfolio in the United States, marking a strategic reversal following consumer resistance to previous increases and mounting pressure from appetite-suppressing medications. The move affects flagship brands including Doritos, Lays (marketed as Walkers in the UK), and Cheetos, with prices decreasing by approximately 15% beginning this week.
The decision comes as the food and beverage conglomerate confronts dual challenges: widespread consumer frustration over shrinking product sizes amid persistent inflation, and the growing market penetration of GLP-1 weight-loss injections such as Wegovy and Ozempic. These medications have demonstrated substantial impact on eating habits, with many users reporting significantly reduced food expenditures due to suppressed hunger.
PepsiCo leadership emphasized their responsiveness to economic pressures facing American households. “We’ve dedicated the past year to attentive consumer listening, and the consistent feedback indicates considerable financial strain,” stated Rachel Ferdinando, PepsiCo’s US Food Division lead. “This price adjustment demonstrates our commitment to alleviating pressure where possible.”
The timing coincides strategically with the upcoming Super Bowl on February 8th—traditionally the year’s most profitable period for snack manufacturers. The company confirmed that package dimensions, ingredient quality, and flavor profiles will remain unchanged despite the reduced suggested retail prices, though final pricing determinations rest with individual retailers.
Financially, PepsiCo reported robust quarterly revenue of $29.34 billion for the period ending December 27th, yet its shares had declined approximately 5% throughout 2025 while underperforming against competitor Coca-Cola over a five-year horizon. Early Tuesday trading saw a nearly 4% share price increase following the announcement.
Looking forward, CEO Ramon Laguarta revealed the company is “heavily investing in portion control strategies,” with over 70% of current US products being single-serve items. This includes increased focus on multipack offerings and the forthcoming introduction of health-conscious alternatives like Doritos Protein later this year.
The corporation acknowledges ongoing challenges from production cost inflation, including aluminum tariffs, labor market pressures, and climate-related disruptions—factors that previously led French supermarket giant Carrefour to cease stocking PepsiCo products in multiple European markets citing “unacceptable” pricing practices. Despite these headwinds, PepsiCo anticipates 2026 will deliver record productivity savings.