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PepsiCo adds more chips to bags amid ‘shrinkflation’ backlash

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Snack and beverage company PepsiCo has announced it will increase the amount of chips it puts in bags. This comes after the company faced accusations of “shrinkflation.”

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During a recent earnings call, the company announced its plans to add 20% more chips to certain bags of Tostitos and Ruffles. PepsiCo is the maker of both brands and others. The company also stated it would also include two additional small chip bags in some of its variety packs — without raising the current prices.

This decision comes after increased public backlash and scrutiny from lawmakers. U.S. Sen. Elizabeth Warren, D-Mass., and U.S. Rep. Madeleine Dean, D-Pa., recently addressed “shrinkflation” in a letter. The lawmakers accused PepsiCo and other companies of the practice. President Joe Biden also called out companies in a video posted before February’s Super Bowl.

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Internationally, the issue reached France earlier this year when supermarket chain Carrefour pulled PepsiCo products from its shelves, citing their high prices relative to their size.

However, this isn’t a new phenomenon. In 2021, consumer protection lawyer Edgar Dworsky, who runs Mouseprint.org, found that Tostitos and Ruffles bags had shrunk by as much as two ounces, with no corresponding price reduction. 

A New York Times analysis discovered that Lay’s bags began carrying five fewer chips, saving PepsiCo $50 million annually.

While PepsiCo described its latest move as a “bonus bag,” Dworsky pointed out that it is only a temporary promotion. He emphasized that the overall downsizing of products without a price cut remains unaddressed.

A recent Morning Consult survey revealed that nearly half of respondents had switched brands after noticing “shrinkflation,” and about 30% said they stopped buying certain brands altogether.

Dworsky advises consumers to pay attention to the price per unit to avoid falling victim and suggests considering generic or store brands, which tend to resist the practice longer

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[KARAH RUCKER]

IF YOU FEEL LIKE YOUR CHIP BAGS ARE FILLED WITH MORE AIR THAN CHIPS THESE DAYS, YOU ARE NOT ALONE—AND ONE COMPANY IS FINALLY RESPONDING TO THOSE COMPLAINTS.

PEPSICO, THE MAKER OF LAY’S, DORITOS, TOSTITOS, AND RUFFLES, HAS BEEN ACCUSED OF “SHRINKFLATION.” THAT IS WHEN COMPANIES DOWNSIZE THEIR PRODUCTS BUT KEEP THE PRICE THE SAME.

AFTER FACING PUBLIC BACKLASH, PEPSICO SAYS IT PLANS TO ADD 20-PERCENT MORE CHIPS TO CERTAIN BAGS OF TOSTITOS AND RUFFLES.

THE COMPANY ANNOUNCED DURING A RECENT EARNINGS CALL THAT IT WILL ALSO INCLUDE TWO ADDITIONAL SMALL CHIP BAGS IN SOME OF ITS VARIETY PACKS—ALL AT THE SAME PRICE AS THE CURRENT VERSIONS.

SENATOR ELIZABETH WARREN AND REPRESENTATIVE MADELEINE DEAN RECENTLY ACCUSED PEPSICO, ALONG WITH OTHER COMPANIES, OF SHRINKFLATION IN A LETTER.

MEANWHILE, PRESIDENT BIDEN TOOK SHRINKFLATION HEAD ON IN A VIDEO POSTED BEFORE FEBRUARY’S SUPER BOWL.

PRESIDENT JOE BIDEN

“YA KNOW, WHILE BUYING SNACKS FOR THE GAME, YOU MIGHT HAVE NOTICED ONE THING: SPORTS DRINKS BOTTLES ARE SMALLER. A BAG OF CHIPS HAS FEWER CHIPS, BUT THEIR STILL CHARGING US JUST AS MUCH.”

i’VE HAD ENOUGH OF WHAT THEY CALL SHRINKFLATION.”

KARAH RUCKER

AND IN FRANCE, SUPERMARKET CHAIN CARREFOUR PULLED PEPSICO PRODUCTS OFF ITS SHELVES EARLIER THIS YEAR, SAYING THEY HAD BECOME TOO EXPENSIVE FOR THEIR SIZE.

BUT SHRINKFLATION IS NOTHING NEW.

BACK IN 2021, CONSUMER PROTECTION LAWYER EDGAR DWORSKY, WHO RUNS MOUSEPRINT.ORG, FOUND THAT TOSTITOS AND RUFFLES BAGS HAD SHRUNK BY AS MUCH AS TWO OUNCES, WITHOUT ANY PRICE CHANGE.

A TIMES ANALYSIS SAID LAY’S BAGS STARTED CARRYING FIVE FEWER CHIPS, SAVING PEPSICO 50-MILLION-DOLLARS ANNUALLY.

WHILE PEPSICO IS CALLING THIS MOVE A “BONUS BAG,” DWORSKY POINTS OUT THAT IT IS ONLY A TEMPORARY PROMOTION. HE SAID IT DOES NOT ADDRESS THE OVERALL DOWNSIZING OF PRODUCTS FOR THE SAME PRICE.

A RECENT SURVEY BY MORNING CONSULT FOUND THAT NEARLY HALF OF RESPONDENTS HAD SWITCHED BRANDS AFTER NOTICING SHRINKFLATION, AND ABOUT 30-PERCENT SAID THEY STOPPED BUYING CERTAIN BRANDS ALTOGETHER.

DWORSKY’S ADVICE IS TO PAY ATTENTION TO THE PRICE PER UNIT TO AVOID FALLING VICTIM TO SHRINKFLATION, AND CONSIDER TRYING GENERIC OR STORE BRANDS, WHICH TEND TO RESIST THE PRACTICE LONGER.

FOR MORE OF OUR UNBIASED — STRAIGHT FACTS REPORTING — DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT US AT SAN – DOT – COM.

FOR SAN, I’M KARAH RUCKER