Snacks are getting cheaper as Americans tire of high prices

Higher prices have affected PepsiCo’s snack unit Frito-Lay in its second quarter, resulting in a decline in revenue. The company attributes this to years of inflation, leading to tighter household financial conditions and more value-conscious consumers. To address this, Frito-Lay is considering cost-cutting measures and increased promotions for its portfolio of snack brands. The trend of price cuts by major retailers may continue as consumers become more restrained. PepsiCo’s CEO has acknowledged the need to offer value to consumers and mentioned potential price adjustments for certain products in their portfolio. The company aims to invest in customers seeking affordable options through broader price tiers and increased marketing for cheaper products.