PepsiCo Increases Chip Bag Sizes Amid Consumer Backlash

PepsiCo is attempting to win back customers by increasing the amount of chips in select bags of its brands like Lay’s, Doritos, Tostitos, and Ruffles, as a response to the negative consumer reaction to 'shrinkflation'. The company will offer 'bonus' bags with 20% more chips at no additional cost and is adding two more small bags to its variety packs. This move is partly driven by the football season, a time of increased snacking, and aims to counteract a decline in snack sales, which fell by 1% last quarter. Edgar Dworsky from Consumer World highlights that this is likely a temporary promotional strategy rather than a permanent change. PepsiCo's decision follows consumer backlash against reduced product sizes at higher prices, which led to customers opting for cheaper brands. As the largest producer of salty snacks in the U.S., PepsiCo's actions could prompt similar responses from competitors.