"Sales at Frito-Lay, the company's snacks powerhouse, were plunging. Some of its chips cost more than $7 a bag; at Walmart, Doritos prices had jumped nearly 50% from 2021."
"With the war in Iran sending oil prices soaring, consumers under even more economic pressure may not be lured back by PepsiCo shaving less than a dollar off a snack bag."
"PepsiCo Chief Executive Officer Ramon Laguarta said at a conference in February that the company will know by this summer if the cuts are 'enough.'"
PepsiCo's snack prices had risen excessively, leading to declining sales at Frito-Lay. Walmart pressured PepsiCo to lower prices, which had increased significantly. In February, PepsiCo announced a price reduction of up to 15% on some snacks after missing revenue targets for two consecutive years. However, rising oil prices due to the war in Iran may hinder the effectiveness of these cuts, as consumers face increased economic pressure. PepsiCo's CEO indicated that the impact of the price cuts would be assessed by summer.
Read at Los Angeles Times
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