Have Potato Chips Reached Peak Price?
Why did PepsiCo's Frito-Lay revenues decline?
PepsiCo's Frito-Lay revenues declined due to a 4% drop in volumes, as consumers became more price-conscious and sought more value in their purchases. This led to questions about whether the prices of popular snacks had become too high, prompting PepsiCo to plan price cuts and more sales on certain products.
What caused the 4 percent drop in Frito-Lay volumes?
The 4 percent drop in Frito-Lay volumes was caused by a combination of factors, including consumers becoming more price-conscious due to economic pressures, households across income levels seeking more value, and the overall deceleration in the snacks market1. PepsiCo acknowledged these challenges and plans to cut prices or offer more sales on certain salty snacks and other products to boost sales.
How did PepsiCo respond to high snack prices concerns?
PepsiCo acknowledged the concerns about high snack prices and announced plans to cut prices or offer more sales on certain salty snacks and other products. CEO Ramon Laguarta admitted that some consumers were more challenged and seeking more value, prompting the company to adjust its pricing strategy.