Snack Makers Cut Prices to Win Back Inflation-Weary Consumers

PepsiCo announces up to 15% price cuts on popular snacks like Doritos and Lay's ahead of Super Bowl weekend

Published on Feb. 7, 2026

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As grocery prices have climbed over 25% in the last five years, consumers are increasingly turning to cheaper private label snack options. In response, PepsiCo has announced it is cutting wholesale prices up to 15% on popular snack brands like Doritos, Lay's, Cheetos and Tostitos. Retailers say they will pass these savings on to shoppers, with an 8-ounce bag of Lay's potentially dropping from $4.99 to $4.29. Experts say this is just the beginning as snack makers look to win back value-conscious consumers.

Why it matters

The price cuts come as 66% of Americans are very concerned about the rising cost of food and consumer goods. Snack makers like PepsiCo and Mondelez are facing a 'K-shaped' economy where wealthier consumers are driving premium snack sales, while lower- and middle-income shoppers are increasingly turning to private label and value options. These price reductions could help major brands retain loyal customers and build goodwill with cost-conscious consumers.

The details

PepsiCo announced the wholesale price cuts of up to 15% this week, which will allow retailers to potentially pass along savings to consumers. For example, an 8-ounce bag of Lay's potato chips could drop from $4.99 to $4.29, while a 9.25-ounce bag of Doritos could fall from $6.29 to $5.49. Grocery CEO Stew Leonard said his stores will pass the full PepsiCo price cuts on to shoppers, noting 'Food is a very price-sensitive item for customers, and they will travel for a good deal.'

  • PepsiCo announced the price cuts this week.
  • Grocery prices have climbed 25.6% over the last five years.

The players

PepsiCo

An American multinational food, snack, and beverage corporation that makes popular snack brands like Doritos, Lay's, Cheetos and Tostitos.

Stew Leonard

Chief executive officer of Stew Leonard's, a regional grocery chain in New York, New Jersey and Connecticut.

Dirk Van de Put

Chairman and CEO of Mondelez, the company that makes Oreos and Ritz crackers.

Brian Choi

Managing partner and CEO at The Food Institute, an industry data and consulting firm.

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What they’re saying

“You won't believe what happens to volume when I lower the price 10 cents. Food is a very price-sensitive item for customers, and they will travel for a good deal.”

— Stew Leonard, Chief executive officer of Stew Leonard's (NBC News)

“The average shopping basket of the consumer in the U.S., whether you're in the higher or in the lower social economic classes, has not increased for the last two, three years. Within that basket, they have spent more money on the basics: milk, meat, bread and so on. And as a consequence, snacking is being affected.”

— Dirk Van de Put, Chairman and CEO of Mondelez (Mondelez earnings call)

What’s next

Experts say this is just the beginning of snack makers lowering prices to win back inflation-weary consumers, with more price cuts likely on the way.

The takeaway

In a 'K-shaped' economy where wealthier consumers are driving premium snack sales while lower- and middle-income shoppers seek value, major brands like PepsiCo are cutting prices to retain loyal customers and build goodwill with cost-conscious consumers.