PepsiCo Plans 'Value Reset' Amid Snack Price Woes

PepsiCo's snack division, Frito-Lay, has experienced a decline in sales and revenue amid persistent inflation and tighter household financial conditions. Prices for snacks, including popular brands like Lay’s, Cheetos, and Doritos, have risen significantly since 2020, leading to subdued consumer demand as customers become more value-conscious. The company is now considering a 'value reset' by adjusting prices and offering broader price tiers to attract budget-conscious consumers. Sales volumes for many of PepsiCo's food and snack products have fallen in recent quarters, affecting even high-income households. The trend of consumers trading down to store brands and the overall slowdown in discretionary spending have impacted PepsiCo's financial performance. Despite these challenges, PepsiCo aims to regain consumer trust by enhancing promotions and marketing strategies.