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PepsiCo, the company behind popular snacks like Doritos and Lays, has managed to win back customers by lowering the prices of its chips. After facing criticism for raising prices in 2022 due to higher production costs, PepsiCo decided to cut the prices of several of its products, including Doritos, Lays, Tostitos, and Cheetos. These price cuts, some as high as 15 percent, were timed to start just before the Super Bowl, a major event for snack sales in the United States. This strategy paid off, as PepsiCo reported an 8. 5 percent increase in sales during the first quarter of the year, reaching 19. 4 billion dollars. The company's operating profit also rose by 25 percent to 3. 2 billion dollars, and its shares increased by 2 percent in early trading after the results were announced.

Ramon Laguarta, PepsiCo's chief executive and chairman, explained that the company's focus on making snacks more affordable helped improve its performance. He also mentioned that PepsiCo is paying attention to changing eating habits, especially as more people use appetite-suppressing weight-loss medications. These medications are causing people to eat less and buy smaller portions. In response, PepsiCo is offering more single-serve and multipack options to help customers control their portions. In fact, over 70 percent of PepsiCo's food products in the US are now sold in single-serve packs. This shift is part of the company's effort to adapt to new consumer preferences and maintain its position in the market.

Danni Hewson, a financial analyst at AJ Bell, pointed out that PepsiCo had to work hard to regain the trust of customers after previous price increases. She noted that affordability is becoming more important for American consumers, who are feeling financial pressure from many directions. Snacks are often seen as a treat that can be cut from the shopping list if money is tight. Hewson also said that PepsiCo still has more work to do to make its products even more affordable for consumers. Looking ahead, PepsiCo is hoping that its sponsorship of this summer's World Cup, which will take place in the US, Mexico, and Canada, will boost sales even further. The company plans to launch special 'fan of the match' promotions for its Lays brand during the tournament, aiming to attract even more snackers and keep its sales momentum going.