Many CPGs started 2025 aware that they couldn’t keep banking on price hikes to achieve revenue growth. Now, after a year of tariff-related uncertainty and declining volumes, even in non-discretionary categories, CPGs are realizing they need to quickly figure out a way to get alienated shoppers to buy more of their products. At this year’s CAGNY conference, and on recent earnings calls, CPGs have harped on their aim to drive volume growth as consumers have made the strain of price increases clear with smaller basket sizes and waning loyalty. PepsiCo is a clear leader in this effort, last month slashing prices for its popular snacks like Lay’s and Doritos, which it said was a response to consumers’ financial pressures. The move, CEO Ramon LaGuarta said at CAGNY last month, comes as the company is feeling “friction” from low- and middle-income shoppers and wants to “reignite the volume of the category” and increase household penetration. So far, it’s paying off. “The consumer clearly is telling us it was the right thing to do,” LaGuarta said. Other CPGs have similar goals: Kraft Heinz and Mondelez were among those that spoke of a need to crank up their volumes at CAGNY, too. It’s a necessary change for CPGs, John Mercer, head of global research at Coresight Research, told Retail Brew. “After multiple years of really underwhelming unit growth overall and really quite aggressive price increases, the CPGs need to fight back for unit growth,” he said. Keep reading here.—EC |