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

If you’ve been down to the snack bar lately, you probably felt like you needed a small loan to buy a bag of Doritos.

We’ve been complaining about it for years, and it seems the corporate suites people are finally listening. Or, maybe, they saw their sales numbers go up and realized they couldn’t keep pushing us forever.

In what is a rare win for the average consumer, PepsiCo — the giant behind Lay’s, Cheetos and Tostitos — announced it was slashing its suggested retail prices by 15%. This is not just a temporary holiday sale. A reversal of the high price strategies that have defined the post-pandemic era.

Why did the group have to end with big products?

For a while there, the big food companies had a good thing going. They raised prices, blamed supply chain problems and watched their profits soar. But consumers eventually get to the point.

According to recent data, shoppers have been ditching brand names on other store brands in bulk to save more than 33%.

PepsiCo’s North American snack sales volume has been weak, and it is facing pressure from activist investors to turn things around. Basically, we stopped buying $6 air bags, and the company finally realized they needed to invite us back to the party.

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

The catch: Dealers still hold the cards

Before you run to the store for Super Bowl shopping, here’s your reality check. PepsiCo sets the suggested price, but does not own the shelves.

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

Keep a close eye on the unit price — that little number on the shelf tag — to make sure the math is right for you.

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

Has inflation finally arrived?

PepsiCo isn’t the only one feeling the heat. We recently saw Kroger slash prices on more than 1,000 items as it tries to woo frustrated shoppers. General Mills, the maker of Cheerios, has also revealed ways to cut costs.

It’s a start, but don’t expect 2019 grocery prices to rebound overnight. While the prices of snacks are rising, some basic items are still going up.

Government projections suggest that grocery prices could rise by 2% to 3% by 2026, with beef and chocolate likely to be the biggest hit.

How to play the snack food price war

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

• Don’t ignore generics: Even with a 15% cut, the brand-name bag is usually still more expensive than the Aldi or Walmart version. If you can’t taste the difference, don’t pay for the logo. Read more in “8 Aldi Foods That Are Better Than Brand Name Versions.”
• Check inflation: 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 weight of the net under the bag.
• Deposit your savings: A price cut is great, but a price cut plus a coupon or cash back program is even better. If PepsiCo tries to revive growth, expect to see aggressive promotions in your store applications.

It’s nice to see a corporate giant blink, but remember: Companies don’t make these moves because they love it. They do it because they need your money. Always be skeptical, keep comparing those unit prices, and don’t let the “15% off” blind you to a better shelf.