Tostitos and Ruffles Shrank Their Bags of Chips. It Backfired
PepsiCo, the maker of popular chip brands Lay’s, Doritos, Tostitos, and Ruffles, has faced consumer backlash after reducing the size of their chip bags. In response to rising costs and consumer dissatisfaction, PepsiCo is now increasing the quantity of chips in certain bags to win back shoppers.
Select locations will see ‘bonus’ bags of Tostitos and Ruffles containing 20% more chips at no additional cost compared to regular bags. Additionally, the company is introducing two extra small chip bags in its 18-count variety pack.
This move is part of PepsiCo’s strategy to address the issue of shrinkflation, where companies reduce product sizes while maintaining or increasing prices. The decision comes as consumers are opting for less expensive private-label brands from retailers like Walmart and Costco instead of premium brands.
PepsiCo’s competitors are expected to follow suit by increasing their product sizes, as noted by analysts. The price of salty snacks has surged faster than other grocery items, with the cost per ounce rising by 36% since 2020.
