PepsiCo and Coke Face Consumer Backlash Over Price Hikes

Coca-Cola and PepsiCo are facing pushback from consumers as they try to protect profits by raising prices. The two companies reported earnings that showed demand softening in North America, despite marketing efforts.

PepsiCo acknowledged affordability limits and adjusted course, offering greater affordability on certain packages of iconic brands. This move is part of a larger effort to improve purchase frequency, not just protect margins. In contrast, Coca-Cola is leaning on pricing discipline and brand power, but is also doubling down on marketing speed and relevance.

The divergence in approach between the two companies highlights a more sobering reality for big CPG brands: price elasticity is no longer theoretical. It's showing up in depressed sales volumes, forcing companies to admit that brand equity alone isn't enough to protect them from budget-conscious shoppers.