After years of price increases and countless complaints, Pepsi Finally listening to customers. The maker of Doritos announced yesterday that it will cost cutting will give its most popular snacks a “15% boost” as early as this week to appeal to Americans feeling the pinch in the K-shaped economy.
Now, the pain of eating a bag of Flamin’ Hot Cheetos is still there, but lessened when you buy it. This is a new direction:
- The average price of PepsiCo products has risen about 4% over the past two years, after posting double-digit percentage spikes in 2022 and 2023.
- Analysts at Jefferies said that since 2020, retail prices for salty snacks across the industry have increased by 38% through June 2024.
Market adjustment: PepsiCo CEO Ramon Laguarta said it was a direct response to low- and middle-income consumers giving up snacks or buying cheaper store-brand products. The company also received numerous complaints via voicemail and email about the high prices.
No shrinkage and expansion: Sizes will remain the same, but new sales tags will advertise lower prices.
skyrocketing go out: The price drop coincides with this weekend’s Super Bowl, a big day for snacks. In the big game of 2024, Americans are spending $670 million on snacks, with nachos being the top seller.—DL
This report is Originally published go through morning brew.