Everyone put down the torches and pitchforks. The revolution is over.
Break out the Rotel dip.
Originally Posted by : America revolted against Tostitos and Ruffles. Now they’re making big changes
PepsiCo is unshrinking shrinkflation.
The owner of Lay’s, Doritos, Tostitos and Ruffles chips will put more chips in some bags to claw back customers tired of higher prices with skimpier bags. Shoppers have balked at downsized chips, cookies, paper towels and other products, widely known as shrinkflation, and turned to cheaper options or stopped buying altogether.
A PepsiCo spokesperson told CNN that Tostitos and Ruffles “bonus” bags will contain 20% more chips for the same price as standard bags in select locations. PepsiCo is also adding two additional small chip bags to its variety-pack option with 18 bags, the spokesperson said.
“It’s the football season. There’s a lot of gatherings,” PepsiCo CEO Ramon Laguarta said on an earnings call last week.
It’s a reversal of years of shrinking bags of Tostitos, Ruffles and other chip brands.
In 2021, Edgar Dworsky, a consumer protection lawyer and founder of the website Consumer World, who meticulously tracks shrinkflation, found that Tostitos’ “Hint of Guacamole” version shrank by one ounce from 12 to 11 ounces, while its “Hint of Lime” version dropped from 13 ounces to 11. Dworsky also found that Ruffles shaved off a half-ounce to a “Sour Cream & Onion” bag in 2013.
“It’s about time,” Dworsky said of PepsiCo’s move. “Chip lovers have suffered through years of downsizings.”
PepsiCo is the largest manufacturer of salty snacks in the United States, and its competitors are likely to follow its lead with increased sizes of their own, Robert Moskow, an analyst at TD Cowen, told CNN.
Higher prices, lower sales
PepsiCo is making these changes because consumers, strained by a run-up in inflation, have been buying fewer snacks. When they do, they often switch from pricier big brands like Tostitos to Walmart, Costco and other retailers’ private-label brands.
During the third quarter of 2024, snack sales declined 0.5% from the same period a year ago, and retail snack volumes declined by 1.1%, according to research by Bank of America analysts.
PepsiCo’s snack sales dropped 1% last quarter and its snack volumes dropped 1.5%.
Snack prices have gone up more rapidly than other store items.
The price per ounce of salty snacks has increased 36% compared to 2020, outpacing a 21% increase in overall grocery store prices, Moskow said.
The average price of 16-ounce potato chips in September was $6.46. In September 2020, the average price was $5.02, according to the Bureau of Labor Statistics.
Consumers and lawmakers in recent years have also protested companies downsizing products while simultaneously raising prices. Everyone from President Joe Biden to the Cookie Monster has complained about shrinkflation.
PepsiCo, General Mills, Mondelez and other snack giants have ramped up promotions to try to win back customers, but the promotions have been ineffective, according to Bank of America.
Other companies are also trying to respond to consumers’ frustration with shrinkflation.
Domino’s last month offered a limited-time deal called “Moreflation.” Online customers who ordered two or more medium two-topping pizzas could upgrade one of their pizzas to a large for free.
“Consumers are getting fed up of actually seeing a smaller portion for the same price,” Domino’s finance chief Sandeep Reddy said on an earnings call last month.
Originally Posted by 4th and Long:
Everyone put down the torches and pitchforks. The revolution is over.
Break out the Rotel dip.
There's something strange about this article, the headline makes it seem like they're putting more chips per bag but when you read the article there's very little mention of regular bags actually getting more chips. There's no mention that I can find that regular bags are actually say going from 16 oz. to 18 oz. The only mention of bags actually getting bigger I can find are these two lines.
Originally Posted by :
The owner of Lay’s, Doritos, Tostitos and Ruffles chips will put more chips in some bags to claw back customers tired of higher prices with skimpier bags.
Originally Posted by :
A PepsiCo spokesperson told CNN that Tostitos and Ruffles “bonus” bags will contain 20% more chips for the same price as standard bags in select locations.
It doesn't really sound like your average bag of chips is going to change unless you can find a "bonus bag" at one of the "select locations". [Reply]
Originally Posted by ThaVirus:
But in general, this is a win for the people.
Corporate greed and shrinkflation has hit basically every industry and we’re getting fucked.
yeah they maybe legit did these things in the pandemic. The pandemic is way over. This is just corporate greed. Let’s just keep the price at pandemic prices and since there is no supply issues anymore, we will increase our profits. That’s not cool. [Reply]
Originally Posted by ThaVirus:
But in general, this is a win for the people.
Corporate greed and shrinkflation has hit basically every industry and we’re getting ****ed.
The first one I noticed was Ritz crackers, not having a full sleeve as they had not spent the money on new packaging, just quit filling what they already had.
We just quit buying them and after looking at the link/article Bowser provided, it has been a good thing.
Just today, in Sam's the coffee Mrs. likes, in those K cups, has gone from 100 in a box to 80 for the same price. If it was for me, I would have said fuck you and not bought them, but hey. [Reply]
