When shopping before the Super Bowl you may have noticed better prices on some of your favorite snacks. Was the price reduction simply smart marketing or did PepsiCo cave to investor pressure? According to company officials, they lowered prices to help consumers. Yet their decision came after PepsiCo stakeholder Elliott Management called for a price reduction to counteract shrinking sales. 

Last year, PepsiCo saw a slight revenue increase but mainly due to higher prices. Their sales volumes have been declining in the U.S. for two consecutive years. Higher prices and inflation have caused most people to look at snack foods as a luxury item. Health-conscious Americans already viewed snack foods as a non-essential; something to enjoy on occasion. Now, because of GLP-1s, more people are snacking less often. 

PepsiCo states that the price reduction on Lay’s, Doritos, Cheetos, and Tostitos is not temporary. They added that they are aware that many Americans have become focused on portion control and healthy options. They reduced prices on single-serving snacks by nearly 15%. They’re also working on new products free of artificial colors and flavor and a line of protein chips and chips made with olive oil or avocado oil. 

Whether PepsiCo caved to investor pressure when reducing prices or not, the changes they are making will benefit consumers and will give the competition a run for their money. All companies should listen to the people who keep them in business. Ignore them and you won’t be in business for long.