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Old 10-16-2024, 10:10 AM  
4th and Long 4th and Long is online now
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Lay’s, Doritos, Tostitos and Ruffles get more chips

Everyone put down the torches and pitchforks. The revolution is over.

Break out the Rotel dip.


Quote:
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.
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Old 10-16-2024, 10:12 AM   #2
Direckshun Direckshun is online now
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Old 10-16-2024, 10:17 AM   #3
loochy loochy is online now
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Shrinkflation is probably a good thing with junk foods like this. We don't need that shit.
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Old 10-16-2024, 10:29 AM   #4
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The product inside the package is the cheapest component.

Ads, freight, packaging dwarf it in comparison. Thats why shrinkflation pisses me off.
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Old 10-16-2024, 10:30 AM   #5
BlackHelicopters BlackHelicopters is offline
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Old 10-16-2024, 10:30 AM   #6
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Quote:
Originally Posted by loochy View Post
Shrinkflation is probably a good thing with junk foods like this. We don't need that shit.
This man hates chips.
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Old 10-16-2024, 10:31 AM   #7
UteChief UteChief is offline
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I stopped buying the items I noticed had shrinkflation. Anything to save a $1.
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Old 10-16-2024, 10:36 AM   #8
Hammock Parties Hammock Parties is online now
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Now they need to do fritos.

The ratio of a bag o fritos to a jar of bean dip is way off.
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Old 10-16-2024, 10:41 AM   #9
Mecca Mecca is offline
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Originally Posted by Hammock Parties View Post
Now they need to do fritos.

The ratio of a bag o fritos to a jar of bean dip is way off.
Gross!
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Old 10-16-2024, 10:43 AM   #10
George Liquor George Liquor is offline
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Fritos are awful. The chili cheese ones are alright but it's a shame they put that powder on such an bad tasting chip because if it can make fritos edible, it could do wonders on a normal corn chip.
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Old 10-16-2024, 10:53 AM   #11
Bowser Bowser is online now
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A bag of Tostitos has been the worst with usually 50% of the bag, be it regular or party sized, being nothing but air. Chips have been nothing but a pure profit machine going on years and years for Pepsi.
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Old 10-16-2024, 10:54 AM   #12
Bearcat Bearcat is offline
Would an idiot do that?
 
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Good to see the market eventually sorting itself out.

Now stop renting out Airbnbs for $400/night and a $150 cleaning fee.
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Old 10-16-2024, 10:54 AM   #13
penguinz penguinz is offline
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Quote:
Originally Posted by Hammock Parties View Post
Now they need to do fritos.

The ratio of a bag o fritos to a jar of bean dip is way off.
No one is surprised you eat this shit.
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Old 10-16-2024, 10:55 AM   #14
Mecca Mecca is offline
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Good to see the market eventually sorting itself out.

Now stop renting out Airbnbs for $400/night and a $150 cleaning fee.
I looked into that, there's a reason the cleaning fee is so high...
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Old 10-16-2024, 10:58 AM   #15
Titty Meat Titty Meat is offline
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