Feb 11, 2026
PepsiCo is approaching the economy on another level.
After years of soaring inflation, which has seen the price of groceries rise 26.1% between October 2019 and February 2026, coupled with backlash against shrinkflation, one of the biggest consumer packaged goods brands is hoping to lure customers back with price cuts (1, 2).
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PepsiCo announced price cuts to Lay's, Doritos, Cheetos and Tostitos chips during an investor call in early February. The snack food giant is seeing its sales and market shares slip as consumers turn to cheaper in-store brands or skip non-essential groceries like snack foods.
“For some consumers, low- and middle-income consumers, the biggest friction they have today in our category … is affordability,” PepsiCo chairman and CEO Ramon Laguarta said. “So we have been testing multiple ways to give them affordability (3).”
General Mills is another major brand reducing prices on nearly two-thirds of its grocery products, according to Bloomberg (4).
The price cuts acknowledge that American shoppers are feeling the squeeze. Here’s why it matters, and how you can continue to trim your grocery bill beyond just the price tags.
The rising cost of groceries
There’s been next to no relief to the sticker shock felt by many Americans, and it’s catching the eyes of economists.
“Consumers are done with price increases,” said Jennie Bell, NielsenIQ’s Managing Director of Snacking & Beverages (5). The New York Times reports that in the last year, the price of beef has risen 16.4%, coffee has increased almost 20% and a head of lettuce is 7.3% more (6).
Even canned goods, an affordable mainstay, are rising in price. Tariffs on steel and aluminum have increased the cost of manufacturing cans, and it’s been passed onto consumers (7).
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An Axios poll in September 2025 reported that 47% of respondents were struggling when compared to 2024 (8). Affordability has pushed consumers towards no-name or in-store brands, and big box stores like Target and Walmart are reporting major sales in their goods. Target's Good & Gather products were found in one-third of shopping baskets at the store. In 2024, it surpassed $4 billion in value (3).
Overall, the cost of food per household rose 2.4%, and a notable 0.7% in December, according to data from the Bureau of Labor Statistics (9). In 2026, grocery prices are expected to rise an additional 2.3%, per predictions from the U.S. Department of Agriculture (10).
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Couponing and discounts
The higher costs have led to a couponing renaissance, now a $10.6 billion digital industry, according to a recent study from Capital One Shopping Research (11). In spite of the popularity of couponing apps, many shoppers have not been reaping the full rewards of coupons, including coupon-stacking.
Here are some other ways you can maximize your savings:
- Avoid the big weekly shop: Visiting the grocery store two or more times a week can help you plan your meals better and avoid food waste.
- Shop the flyer or coupon discounts: Planning your meals around weekly discounts and offers can cut down your grocery bill.
- Go paper-based: While there are tons of digital apps for couponing, clipping from your local newspaper can score you the best deals.
- Buy seasonally: Understanding which produce is in season can help you save big, as well as taking advantage of when fruit and vegetables will be at their ripest.
- Shop around: Comparing prices at different stores can be a cheaper option, even with coupons. Different retailers may have deeper discounts on the same product.
- Do an inventory: Couponing is useless if you buy products that will spoil before you use them. Be sure to keep track of what you have at home and use up those items before you buy more.
- Avoid impulse buys: Stores are filled with traps. They have busy displays on aisle endcaps and near the cash registers. Stick to your shopping list and steer clear of the tempting treats.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
USA Today (1); U.S. Government Accountability Office (2); barchart (3); Bloomberg (4); Food Navigator USA (5); New York Times (6); Can Central (7); Axios (8); Bureau of Labor Statistics (9); U.S. Department of Agriculture (10); ABC News (11).
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
