Chip lovers, rejoice!
PepsiCo, maker of popular chip brands including Doritos, Lay’s, Ruffles, Tostitos and others, will add more chips to certain bags, a company spokesperson revealed during a recent earnings call.
The brand will add 20% more chips to select bonus bags of Tostitos and Ruffles, and will also include two additional bags in various packs, bringing the total number of bags to 18.
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A move by PepsiCo. it comes after the multinational food and drink company was criticized for reducing the volume of products sold without a corresponding reduction in price – also known as “shrinkflation”.
Bank of America analyst Bryan Spillane told CNBC during an interview in June that the price of salty snacks has risen “20% or more” over the past four years.
In addition, consumers are increasingly switching to generic brands instead of name brands to save money amid rising costs and smaller sizes, he added.
A supermarket shelf filled mostly with Frito-Lay chips.
James Leynse/Corbis via Getty
According to FOX News, in a recent earnings call, Pepsi CEO Ramon Laguarta acknowledged that inflation has affected consumer spending patterns. He also said football season means, “There’s a lot of gatherings.”
TD Cowen analyst Robert Moskow told CNN he expects other popular food and snack brands to also start adding more products to their packages — without raising prices — to address the issue.
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Shrinkflation has become such a concern for so many Americans that President Joe Biden even mentioned it in his 2024 State of the Union address, saying, “It’s called shrinkflation. You get charged the same amount, and you get about, I don’t know, 10% less Snickers.”
Categories: Trends
Source: HIS Education