Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers

Consumer pressure and rising competition lead to planned price cuts for PepsiCo snacks.

The company has announced price reductions on several popular snack brands, responding to consumer concerns about affordability with rising living costs. However, PepsiCo’s prices are only recommendations with the final decision made by retailers.

The multinational corporation which manages a product portfolio including Doritos, Walkers crisps, Cheetos, Quaker Oats, Gatorade and Lipton iced tea, had quarterly revenues of more than $29 billion.

Nevertheless, the business faces pressures from trends such as the increasing use of weight loss medications, which have led to reduced food consumption amongst users.

The firm is developing health-oriented products such as Doritos Protein to align with evolving consumer preferences.

Despite record productivity improvements, PepsiCo faces rising operational costs from tariffs on materials like aluminium, increased labour expenses, and climate-related disruption.

The company has previously been criticised for ‘shrinkflation’ practices, where product sizes decreased whilst prices remained constant.