Consumer Backlash Leads PepsiCo to Slash Snack Prices by 15%, but Will You See the Savings?

If you’ve walked down the snack aisle lately, you’ve probably felt like you needed a small personal loan just to buy a bag of Doritos.

We’ve been grumbling about it for years, and it seems the folks in the corporate suites finally heard us. Or, more likely, they saw their sales numbers tanking and realized they couldn’t keep squeezing us forever.

In a move that’s a rare win for the average shopper, PepsiCo — the giant behind Lay’s, Cheetos and Tostitos — announced it’s slashing suggested retail prices by 15%. This isn’t just a temporary holiday sale. It’s a strategic retreat from the sky-high prices that have defined the post-pandemic era.

Why the party had to end for big brands

For a while there, big food companies had a good thing going. They raised prices, blamed supply-chain issues and watched their profits soar. But consumers eventually hit a breaking point.

According to recent data, shoppers have been ditching name brands for store-brand alternatives in droves to save upwards of 33%.

PepsiCo’s snack-sales volume in North America has been sluggish, and it’s facing pressure from activist investors to turn things around. Basically, we stopped buying its $6 bags of air, and the company finally realized it needed to invite us back to the party.

See also: “25 Ways to Spend Less on Groceries”

The catch: Retailers still hold the cards

Before you go sprinting to the store to stock up for the Super Bowl, here’s a reality check for you. PepsiCo sets the suggested retail price, but it doesn’t own the shelves.

Individual retailers like Walmart, Kroger and Target ultimately decide what you pay. While PepsiCo is putting new labels on bags to advertise the lower prices, it’s up to the store to pass those savings on to you.

Keep a close eye on the unit price — that little number on the shelf tag — to make sure the math actually adds up in your favor.

See also: “Cut Your Grocery Bill by Hundreds of Dollars With This One Small Change”

Is de-inflation finally here?

PepsiCo isn’t the only one feeling the heat. We’ve recently seen Kroger cut prices on over 1,000 items as they try to woo frustrated shoppers. General Mills, the maker of Cheerios, has also hinted at more affordability measures.

It’s a start, but don’t expect 2019 grocery prices to come back overnight. While snack prices are dipping, other staples are still climbing.

Government projections suggest grocery prices could still rise 2% to 3% in 2026, with beef and chocolate likely leading the charge.

How to play the snack price war

Should you jump back into the arms of the Chester Cheetah now that he’s 15% cheaper? Here’s my take:

Don’t ignore the generics: Even with a 15% cut, a name-brand bag of chips is often still more expensive than the Aldi or Walmart version. If you can’t taste the difference, don’t pay for the logo. Learn more in “8 Aldi Foods That Are Better Than the Brand-Name Versions.”
Watch for shrinkflation: It’s the oldest trick in the book. If they cut the price by 15% but take 20% of the chips out of the bag, you’re actually losing money. Always check the net weight on the bottom of the bag.
Stack your savings: A price cut is great, but a price cut plus a coupon or a cash-back app is better. If PepsiCo is trying to reignite growth, expect to see more aggressive promotions in your store apps.

It’s nice to see a corporate giant blink, but remember: Companies don’t make these moves because they like you. They’re doing it because they need your money. Stay skeptical, keep comparing those unit prices, and don’t let a “15% off” deal blind you to a better deal one shelf over.