PepsiCo Lowers Prices of Doritos and Cheetos as Ozempic-Era Eating Habits Spread

PepsiCo announced it will reduce suggested retail prices on Doritos, Cheetos, Lay’s, Tostitos, and other snack brands starting this week, with customers potentially saving 60 to 80 cents per bag. The cuts, reaching nearly 15 percent on some products, come as Rachel Ferdinando, CEO of PepsiCo Foods U.S., said the company spent the past year hearing consumers say they’re “feeling the strain.”

Retailers Set Final Prices, Creating Potential for Additional Savings

“Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can,” Ferdinando said in the announcement. The price cuts began rolling out nationwide last week. While PepsiCo lowered its recommended prices, individual retailers control final checkout costs, and the company said shoppers may see even greater savings than its suggested reductions, depending on where they shop.

Weight Loss Drugs Are Changing How Americans Snack

PepsiCo also faces challenges from the growing use of GLP-1 medications like Wegovy and Ozempic, which suppress appetite and reduce the mental preoccupation with eating that can trigger snacking binges. Users of these weight loss drugs say they’re buying far fewer snacks, shifting instead toward healthier choices such as protein drinks, yogurt, fruits, and vegetables. Laguarta said the company is “betting a lot on portion control.”

Grocery Bills Have Surged 30 Percent Since the Pandemic Began

The price cuts come as American households face mounting pressure from grocery costs that have climbed 30 percent since early 2020, outpacing overall inflation’s 26 percent increase during the same period, according to the U.S. Bureau of Labor Statistics. Snack prices specifically rose 2.2 percent year over year in December. Ferdinando said consumers told the company they shouldn’t have to choose between taste and budget.

Consumers Switch to Store Brands as Prices Rise

Facing higher costs, consumers increasingly turned to store-brand products during the first 10 months of 2025, with private-label unit sales rising 0.3 percent while national brand sales fell 0.7 percent, according to the Private Label Manufacturers Association. The data shows shoppers are growing more willing to leave familiar brands behind for generic options that often match quality, putting pressure on companies like PepsiCo to lower prices.

The Timing Targets One of the Year’s Biggest Snacking Days

PepsiCo deliberately timed the price cuts to land before the Super Bowl on February 8, traditionally one of the most lucrative occasions for snack makers, according to the BBC. The cuts came ahead of what the company described as “one of the year’s biggest snacking occasions,” spanning winter gatherings and the Big Game. The company also owns Gatorade, Quaker Oats, and Lipton iced tea brands.

Company Beat Wall Street Expectations Despite Sluggish Snack Sales

PepsiCo reported fourth-quarter revenue of $29.34 billion on Tuesday, exceeding analyst predictions, with fiscal year revenue reaching $93.9 billion, up 2.2 percent. The company’s stock climbed nearly 4 percent following the announcement. However, shares fell about 5 percent over 2025 and have lagged behind rival Coca-Cola for five years as consumers complained about rising prices across several quarters.

Products Will Keep the Same Quality, Size, and Taste

The company emphasized that lower prices won’t mean smaller packages or recipe changes. Products stay the same in quality, size, and flavor, PepsiCo promised. Ferdinando said the company will keep working to make popular brands accessible while maintaining quality and taste. The move breaks from the widespread “shrinkflation” trend, where manufacturers reduce product sizes while keeping prices constant.

Tariffs and Climate Challenges Continue Pressuring Food Manufacturers

Despite easing inflation, food manufacturers still face higher expenses from tariffs on materials like aluminum, rising labor costs, and extreme weather events affecting agriculture. French supermarket chain Carrefour placed shrinkflation warning stickers on PepsiCo products in 2023, then stopped selling them in several European countries the following year over what it called unacceptable price increases, according to the BBC.

Company Plans Record Savings Year With Health-Focused Product Launches

PepsiCo called 2026 a “record year of productivity savings” and announced plans to launch Doritos Protein later this year as part of a shift toward healthier products. With over 70 percent of its U.S. food products sold as single-serve, Laguarta said the company will focus on multipacks as customers watch their portions. Recent acquisitions include Poppi and an increased stake in energy drink Celsius.