PepsiCo Slashes Frito-Lay Snack Prices Up to 5% After Flat U.S. Volume
PepsiCo has cut prices by up to 5% on its Frito-Lay snacks range after U.S. snacks volume was flat in Q4. The company seeks to boost sales following a 0.3% sequential slump in its U.S. snacks segment by driving higher consumer demand.
1. Price-Cut Strategy
PepsiCo implemented price reductions of up to 5% on its Frito-Lay snack portfolio in major U.S. retail channels. The move marks a shift from previous price hikes designed to mitigate commodity cost inflation and is aimed at driving volume growth in its core snacks business.
2. Volume and Sales Outlook
U.S. snacks volumes were flat in the fourth quarter, with the segment reporting a 0.3% sequential sales decline. PepsiCo expects the lower shelf prices to spur consumer demand and narrow the gap to its year-ago volume levels in the upcoming quarter.