PepsiCo will lower the suggested prices of several snack brands in the United States from this week, linking the decision to customer backlash over earlier increases and to pressure from appetite-suppressing GLP-1 weight loss drugs that are changing how much people eat.
The company said products such as Doritos, Lays, and Cheetos will become cheaper in the US. Lays is sold as Walkers in the UK. PepsiCo said it has been “listening closely to customers” who are “feeling the strain” from the rising cost of living. It added that the products included in the cuts will not change in package size, ingredients, or taste.
PepsiCo said the new prices are recommendations and that retailers set the final shelf prices. The company scheduled the cuts ahead of the Super Bowl on February 8, a date that is usually one of the highest sales days of the year for snack makers.
GLP-1 Drugs And Portion Control Shape Strategy
Food companies are adjusting to shifts in demand as GLP-1 weight loss drugs such as Wegovy and Ozempic gain wider use. Many users have said their food spending fell after they started the medication because they felt less hungry.
PepsiCo chief executive Ramon Laguarta said the company is “betting a lot on portion control.” He said PepsiCo will place more emphasis on multipacks as customers focus more on portion size. More than 70% of the company’s food products in the US are sold as single-serve items.
The company also said it is moving toward health-focused products, including a plan to launch Doritos Protein later this year. PepsiCo said its biggest challenge at the moment is affordability. “We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said Rachel Ferdinando, PepsiCo’s US food chief. “Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can.”
Financial Results And Market Reaction
PepsiCo reported revenue of $29.34bn (£21.14bn) for the three months to 27 December. The company’s shares rose nearly 4% in early trading on Tuesday. The stock fell about 5% in 2025 and has lagged behind rival Coca-Cola over the past five years.
PepsiCo said 2026 will be a “record year of productivity savings.”
Costs, Tariffs, And Shrinkflation Concerns
Although inflation in the US is easing, food companies are still facing higher costs. PepsiCo pointed to tariffs on materials such as aluminium, as well as rising labour costs and extreme weather, as factors that are pushing prices higher.
Consumers have also criticised “shrinkflation,” where products become smaller while prices stay the same. In 2023, several PepsiCo products in Carrefour supermarkets in France carried “shrinkflation” warning stickers. In 2024, Carrefour said it would stop selling PepsiCo products in several European countries because of what it described as “unacceptable” price increases.
Featured image credits: Flickr
For more stories like it, click the +Follow button at the top of this page to follow us.