Pepsi unshrinks some shrinkflation as shoppers scoff at lighter chip bags
Honey, I shrunk the chips… Pepsi’s promising to be less stingy after customers complained it was shrinking snack portion sizes while keeping prices the same (aka: shrinkflation). The company, which makes Lay’s, Doritos, Tostitos, and Cheetos, will start tossing 20% more chips into some of its bags for the same price. After years of price hikes that padded profits and drove customers away, Pepsi may be trying to make amends with consumers — and Congress.
Democratic lawmakers this month accused Pepsi, Coke, and General Mills of shrinkflation, likening the practice to price gouging and saying that more than half of inflation has been driven by corporate profits.
Consumer advocates have found several examples of Pepsi shrinkflation, including Tostitos bags with 2 fewer ounces of chips and Gatorade bottles that changed from 32 to 28 ounces.
Ruffle reverse: Pepsi’s snack and bev prices have jumped 40% since 2020. As consumers started skipping its products, Pepsi said it would cut some snack prices.
Inflation’s sneaky cousin… Over the past four years, 31% of supermarket items have shrunk, an analysis suggested. Salty-snack prices grew 36% in that time, outpacing general grocery-store inflation. Last month, the average 16-ounce chip bag cost $6.50 — 28% more than a year ago. Some brands have hopped on the other end of the trend: Domino’s last month began a “moreflation” promotion, bumping up some medium pizzas to larges at no extra charge.
Trust is measured by the ounce… Shrinkflation is so common that the Bureau of Labor Statistics accounts for it in its inflation calculations. While the strategy pumps profits, it can also make customers feel cheated, lowering trust in a brand. 68% of shoppers switch brands when they notice shrinkflation — and it irks consumers more than straight-up price hikes.