Tostitos and Ruffles Respond to Shrinkflation Backlash with Increased Chip Quantities

Tostitos and Ruffles Combat Shrinkflation

In a bold reversal of market trends, Tostitos and Ruffles are boosting chip quantities in their bags to counter the negative perception of shrinkflation. PepsiCo has announced that select bags will contain 20% more chips without an increase in price, a significant move during the bustling football season when snack consumption peaks. PepsiCo's CEO, Ramon Laguarta, highlighted that this decision comes amid a consumer pushback against downsized products, with many shoppers opting for cheaper alternatives.

Industry Impact and Consumer Response

According to analyst Robert Moskow, PepsiCo's size increase is likely to set a precedent for competitors, with snack sales slightly declining by 0.5% year-over-year during the third quarter of 2024. The company is responding to the rising costs of salty snacks, which have increased 36% since 2020, aligning prices closer to overall grocery price hikes. Such shifts are crucial as consumers, grappling with inflation, express frustration over shrinking products sold at higher prices. Both PepsiCo and other snack giants are rolling out promotions to regain customer trust, illustrating the challenges of maintaining brand loyalty in fluctuating markets.