PepsiCo Reverses Shrinkflation in Tostitos and Ruffles to Boost Sales

October 16, 2024

In a move that could signal a shift in pricing strategies, a PepsiCo spokesperson told CNN that the company is preparing to put more chips back into some of its Tostitos and Ruffles bags, marking a departure from the ongoing shrinkflation trend. Select locations will soon see bags with 20% more chips, sold at the same price, offering consumers relief from the shrinking sizes of products in recent years.

PepsiCo, the largest manufacturer of salty snacks in the U.S., hopes the move will revive consumer interest after a dip in sales linked to rising prices. Additionally, the company plans to enhance its variety packs by adding two more bags, signaling a broader push to offer more value to shoppers. This shift could pressure other brands to follow suit.

Shrinkflation — where product sizes decrease while prices remain unchanged — has left many consumers feeling shortchanged. While the practice is legal, PepsiCo’s decision to reverse it could restore consumer confidence and boost sales in an increasingly price-sensitive market. According to a Sales Factory survey on price sensitivity, “87% of respondents say they watch the prices of everyday items,” such as groceries, “closely or very closely.”

As consumers continue to grapple with inflationary pressures, PepsiCo’s decision to offer more value without raising prices could set a new precedent in the snack food industry. If successful, it may prompt other companies to rethink their pricing and packaging strategies, potentially reshaping the way brands respond to consumer demand in an era of heightened price sensitivity. For now, shoppers will be watching closely to see if this reversal of shrinkflation leads to lasting changes in the marketplace.