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PepsiCo cuts prices on Doritos, Lay’s & other snacks by up to 15%
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Friday, 06 February, 2026, 14 : 00 PM [IST]
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Washington, USA
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PepsiCo is cutting the prices of its iconic snack brands, including Doritos, Lay’s, Cheetos and Tostitos, by up to 15% in a bid to boost affordability and reignite consumer demand, according to industry reports and company statements.
The price reductions, rolling out across the U.S. this week, mark a strategic shift for the snacks and beverages giant as it responds to mounting consumer pressure over high grocery bills and slipping snack sales volumes. PepsiCo executives say the move is designed to “improve competitiveness” and encourage more frequent purchases from cost-conscious shoppers.
PepsiCo tested deeper price cuts in the second half of 2025 and found these initiatives helped lift purchase frequency, particularly among inflation-weary consumers. The broader rollout now includes lower suggested retail prices on popular pack sizes for staple products such as Lay’s potato chips, Doritos tortilla chips, Cheetos and Tostitos.
“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 announcing the price reductions. The company’s chief financial officer characterised the strategy as “playing offense” to drive both volume and sales growth.
The price cuts come amid a broader industry trend of returning to value-oriented pricing after several years of elevated prices driven by rising costs for ingredients, packaging and transportation. Many consumers have shifted spending toward private-label alternatives or reduced their overall snack purchases as affordability concerns persist.
PepsiCo’s initiative follows similar moves by other food companies, such as General Mills, that have reduced prices on significant portions of their product portfolios to spark demand. Beyond pricing, PepsiCo is also innovating its product lines — introducing items like versions of Doritos with no artificial dyes and beverages with added functional benefits — to better align with evolving consumer preferences.
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