PepsiCo is cutting costs and slashing prices as it tries to boost sales in a tough market. The beverage giant plans to axe nearly 20% of its US products by early next year, citing the need for a "targeted approach" to deliver everyday value to consumers.
As part of this effort, PepsiCo will review its North American supply chain and focus on reducing operating costs. The company has already taken steps in this direction, closing three manufacturing plants and shutting several manufacturing lines in an effort to cut expenses.
The move comes as consumer sentiment remains a concern for many Americans. In December, the latest reading on consumer sentiment rose by 2.4 points from November to hit 53.3 - still below its all-time low of last year. With nearly half of respondents saying that the cost of living in the US is the worst it's ever been, companies like PepsiCo are feeling pressure to adapt.
Target recently made headlines for announcing price cuts on thousands of items as part of its own effort to boost sales and stem declining revenue. The move was seen as a response to growing consumer demand for more affordable options.
The impact of these changes will be felt by consumers, who may see reduced prices but also fewer product choices on store shelves. While PepsiCo has not revealed which products it plans to cut or reduce prices, the company is focusing on delivering "sharper everyday value" to customers in an effort to drive growth and increase profits.
The review of its North American supply chain and efforts to boost productivity are expected to start taking shape by 2026.
As part of this effort, PepsiCo will review its North American supply chain and focus on reducing operating costs. The company has already taken steps in this direction, closing three manufacturing plants and shutting several manufacturing lines in an effort to cut expenses.
The move comes as consumer sentiment remains a concern for many Americans. In December, the latest reading on consumer sentiment rose by 2.4 points from November to hit 53.3 - still below its all-time low of last year. With nearly half of respondents saying that the cost of living in the US is the worst it's ever been, companies like PepsiCo are feeling pressure to adapt.
Target recently made headlines for announcing price cuts on thousands of items as part of its own effort to boost sales and stem declining revenue. The move was seen as a response to growing consumer demand for more affordable options.
The impact of these changes will be felt by consumers, who may see reduced prices but also fewer product choices on store shelves. While PepsiCo has not revealed which products it plans to cut or reduce prices, the company is focusing on delivering "sharper everyday value" to customers in an effort to drive growth and increase profits.
The review of its North American supply chain and efforts to boost productivity are expected to start taking shape by 2026.
THEY'RE DOING THIS 'CAUSE CONSUMER SENTIMENT IS ACTUALLY WORRIING AMERICANS RIGHT NOW, AND PEOPLE JUST WANT MORE AFFORDABLE OPTIONS. I MEAN, IT'S BEEN TOLD WE CAN'T BUY OUR WAY OUT OF THE PROBLEMS WITH INFLATION, BUT APPARENTLY PEPSI THINKS THEY CAN MAKE A DIFFERENCE BY SLASHING PRICES AND CUTTING COSTS. IT'S A BIZARRE THING, REALLY - COMPANY'S GOTTA BALANCE REVENUE WITH PROFIT, SO WE'LL SEE HOW THIS ALL PLAYS OUT.
I don't know about all this cost-cutting and slashing prices stuff, feels like companies just trying to make a buck off us consumers 
It's like the whole shopping experience is just getting more and more stripped away from us. I mean, I'm all for saving money, but at what cost? My wallet, maybe? 
. I mean, if they just made their regular stuff cheaper instead of cutting stuff, that would be cool 
. But no, they have to pick which ones to keep and which ones to cut, like what a bummer 
. Maybe it's for the best or whatever, but still...
. I mean, who wants to pay more for soda or chips when you can get the same thing cheaper? It's all about the consumers now and companies need to listen up 
. I mean, target just did the same thing and it's like, okay I get it, prices need to come down 
. But, at the end of the day, it's still gonna affect consumers, whether it's reduced product choices or lower prices 
. I mean, who wants to cut their fave snacks just 'cause a company is trying to save some bucks? It's like, you get what you pay for, right?