KUALA LUMPUR, Feb 4 (Bernama) -- Bursa Malaysia erased early gains to end lower today as profit-taking emerged following recent gains. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 5.44 points, or 0.31 per cent, to 1,742.82 from yesterday’s close of 1,748.26. The market bellwether opened 1.84 points lower at 1,746.42, and subsequently hit an intraday high of 1,751.22 in early trade before slipping to its day’s low of 1,740.49 during the mid-afternoon session. In the broader market, losers outpaced gainers 602 to 462, with 558 counters unchanged, 1,013 counters untraded and six suspended. Turnover declined to 2.59 billion shares valued at RM2.86 billion from yesterday's 3.25 billion shares valued at RM3.34 billion.
Summary
PepsiCo is planning price cuts of up to 15% on popular snacks like Lay’s, Doritos and Flamin’ Hot Cheetos, responding to growing consumer frustration over high food prices. The move signals a broader shift among big food brands as shoppers trade down to cheaper alternatives.
What’s Driving the Decision
Consumers pushed back hard: PepsiCo received a surge of emails and voicemails complaining snack prices were too high
Snack inflation has been steep: Salty snack prices were ~38% higher in 2024 vs 2020, according to Jefferies
Sales momentum slowed as shoppers increasingly chose private-label brands
“Consumers told us they need more value,” said Rachel Ferdinando, CEO of PepsiCo’s US food business.
What Prices May Look Like
Lay’s 8oz bag: from US$4.99 → ~US$4.29
Doritos ~9.25oz bag: price cut by ~80 cents to US$5.49
Same pack size, but clearly marketed as lower price
(Retailers set final prices, but PepsiCo expects them to follow its guidance.)
How PepsiCo Is Funding the Cuts
Cost savings and restructuring
Three manufacturing plants closed
Several product lines discontinued
Part of a broader plan following a deal with activist investor Elliott Investment Management
Early Signs & Strategy Ahead
North America food revenue still fell 1% YoY, but snack sales are accelerating
PepsiCo will increase marketing spend on Lay’s, Tostitos, Gatorade and Quaker
Focus on simpler ingredients, plus new products tied to protein, fiber and hydration
Big Picture
PepsiCo’s move highlights a key shift:
- Brand power alone isn’t enough after years of inflation
- Even industry leaders are being forced to give pricing relief to protect volumes
Whether price cuts can fully revive demand remains uncertain — peers like General Mills have seen better sales but weaker margins after similar moves.
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