a group of bags of chips

PepsiCo Offers More Chips to Combat Snackflation

In a move to win over inflation-weary shoppers, PepsiCo is now selling bigger packs of chips without raising prices. The company’s recent decision comes in response to a 1% drop in snack revenue during the third quarter.

Bigger Bags, Better Value

During an earnings call on Tuesday, PepsiCo CEO Ramon Laguarta announced that bags of Tostitos, Ruffles, and Doritos now contain 20% more chips. Variety packs will also include two or three extra bags of chips, adding value for consumers who have experienced years of rising food prices.

Shrinkflation’s Decline

Spiraling food prices in recent years have led many food companies to raise prices and sell smaller packages of food for the same price, a trend known as “shrinkflation.” While inflation has slowed down this year, Americans continue to spend historically high percentages of their budgets on food.

However, PepsiCo’s recent strategy suggests that shrinkflation may be losing its appeal. The company is now betting that offering more chips without raising prices will attract shoppers back to its brands.

A Relief for Snackers

PepsiCo’s move is a welcome change for consumers who have grown weary of paying more for less. As inflation eases and companies seek ways to regain customer loyalty, shoppers can expect to find more deals like these on grocery store shelves.

For PepsiCo, this strategy may be just what’s needed to revive its snack revenue and maintain a competitive edge in the industry. For consumers, it’s a sign of relief after years of stretching their grocery budgets.

Read more about PepsiCo’s third-quarter earnings on Morningstar

Learn about shrinkflation’s impact on consumers at The Journal News

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