PepsiCo Reverses Shrinkflation Amid Consumer Backlash

The snack giant responds to declining sales by adding more chips to Tostitos and Ruffles bags without raising prices.

PepsiCo is increasing the chip content in Tostitos and Ruffles bags by 20% at select locations, keeping the price unchanged.
The move comes after significant consumer complaints about shrinkflation, where product sizes were reduced while prices remained the same or increased.
PepsiCo's decision follows a dip in sales, with its Frito Lay and Quaker Foods divisions experiencing revenue and volume declines in the latest quarter.
Lawmakers, including Sen. Elizabeth Warren, have criticized PepsiCo and other companies for shrinkflation and alleged tax avoidance.
Analysts suggest PepsiCo's actions could prompt similar responses from other snack manufacturers, potentially signaling a shift away from shrinkflation strategies.