""We've spent the past year listening closely to consumers, and they've told us they're feeling the strain," Rachel Ferdinando, chief executive of PepsiCo Foods US, said in a statement."
""PepsiCo Chief Executive Ramon Laguarta said on a call with analysts that the cuts would be \"surgical\" and designed to target places where high prices have caused middle and low-income consumers to pare back their purchases.""
PepsiCo is cutting suggested retail prices by as much as 15% on key brands including Lay's and Doritos while keeping package sizes unchanged. Reductions are rolling out this week ahead of the Super Bowl. Rachel Ferdinando said consumers are feeling the strain. Shares rose as much as 3.7% after the announcement. PepsiCo has struggled to grow North America sales after pandemic-era price increases that are now colliding with stretched consumer budgets. Elliott Management's $4 billion stake pressured PepsiCo to revamp its lineup and lower prices. Ramon Laguarta said cuts will be surgical to target areas where high prices caused middle and low-income consumers to pare back purchases. Lower prices will be offset by accelerated cost reductions.
Read at Los Angeles Times
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