PepsiCo slashing prices on popular snacks amid customer complaints

RALEIGH, N.C. (WTVD) -- As food prices continue to rise, some popular snacks from PepsiCo will soon become cheaper in stores.

PepsiCo, the company behind Doritos, Lay's and Cheetos, recently announced it was slashing prices by 15% because of customer complaints about cost.

"For some consumers, low and middle-income consumers, the biggest friction they have today in our category is affordability. So we have been testing multiple ways to give them affordability," said PepsiCo Chairman and Ceo Ramon Laguarta.

The company had to increase prices because of the rising cost of packaging, ingredients, and transportation. PepsiCo hiked prices by 4.5% globally. Beverages rose 7% in North America, while prices for their snacks rose by 1%.

However, the price hikes have weakened demand, and consumers have begun shopping for generic brands of the same product to save money.

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According to Laguarta, PepsiCo began testing price cuts in some markets during the second half of last year. They discovered that testing price cuts helped to boost sales.

"Volume return is pretty good, and that's what the category needs," Laguarta said.

Along with price cuts, PepsiCo plans to introduce new products with simpler and healthier ingredients, including Gatorade Lower Sugar and Simply NKD Cheetos and Doritos. These products contain no artificial flavors or colors. Lay's potato chips will soon introduce versions created with avocado oil and olive oil.

Since there is a growing demand in snacks with protein and fiber, PepsiCo will introduce Doritos Protein and Pepsi Probiotic. The soda will soon be available across the U.S.

Shoppers could start seeing lower prices in stores this week.

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