PepsiCo Reverses Course With 15% Price Cuts on Chips After Years of Aggressive Hikes

Sticker shock finally broke the chip aisle. After shoppers revolted, PepsiCoPEP

is slamming the brakes on pricing and plans to cut prices by up to 15% on brands like Lay’s, Doritos, and Flamin’ Hot Cheetos. The shift follows years of aggressive hikes that sent salty snack prices up 38% between 2020 and June 2024 — long enough to train budget-conscious shoppers to defect to cheaper store brands.

• The affordability push follows a Dec. 2025 truce with activist Elliott Investment Management, which pressed PepsiCo to fix its struggling $27B North American food unit.
• North American food revenue slipped 1% year-over-year last quarter, even as executives insist US savory snack sales have recently picked up.

Rolling back: PepsiCo isn’t alone in pulling back on pricing. General MillsGIS

cut prices across roughly two-thirds of its North America portfolio last year. CEO Ramon Laguarta admitted Pepsi’s snacks had “become a little more expensive than we would like,” while management said the rollbacks are funded through cost savings. Still, TD Cowen analyst Rob Moskow warned that price cuts haven’t fully stopped volume declines, calling it “cold comfort” for consumers still reeling from four years of cumulative inflation.