As inflation continues to squeeze American households, PepsiCo, the nation’s largest seller of salty snacks, is attempting to win back customers by offering “bonus” bags of chips. In a move that many see as a direct response to the frustration surrounding “shrinkflation”—where companies reduce product sizes while maintaining or increasing prices—PepsiCo is offering more chips for the same price in select locations. The company’s promotion includes popular brands like Lay’s, Doritos, Tostitos, and Ruffles.
For those who have grown weary of paying more for less, PepsiCo’s new offer may sound like a breath of fresh air. Select bags of Tostitos and Ruffles will contain 20% more chips without any price hike, while its 18-bag variety packs will include two additional small bags. The timing is no coincidence, as PepsiCo CEO Ramon Laguarta told analysts that the company aims to take advantage of football season—a time when snack consumption traditionally spikes due to parties and gatherings.
“There’s a lot of gatherings,” Laguarta said, clearly hoping to cash in on the social nature of football-watching events, which often feature salty snacks front and center.
Yet, consumers should be cautious about getting too excited over this promotion. Edgar Dworsky, founder of Consumer World and a long-time observer of “shrinkflation,” warns that the move may be temporary. “The PepsiCo announcement sounds more like a temporary rather than permanent move ahead of the holidays,” Dworsky told *The New York Post*. While shoppers might appreciate the extra chips now, the real question is whether these changes will last beyond the promotional period.
PepsiCo’s decision comes at a time when the company, like others in the snack industry, has seen a downturn in sales. A recent Bank of America analysis revealed that snack sales fell 0.5% in the third quarter of 2024 compared to the same period last year, with PepsiCo’s own snack volumes dipping by 1.5%. It’s a clear sign that inflation has forced consumers to cut back on non-essential items, and snacks are high on that list.
The price of a 16-ounce bag of chips has skyrocketed, reaching an average of $6.46 in September 2024—a staggering 28% increase from just four years ago. As families struggle to make ends meet, paying such a steep price for snack foods has become harder to justify. At the same time, companies like PepsiCo have reduced the amount of product in each package, a phenomenon known as “shrinkflation.”
TD Cowen analyst Robert Moskow highlighted that the price per ounce of salty snacks has increased by 36% since 2020—far outpacing the 21% increase in overall grocery prices. In light of these figures, it’s no wonder that PepsiCo’s sales have taken a hit.
Moskow believes that PepsiCo’s promotion may pressure competitors like General Mills and Mondelez to follow suit. With customers increasingly sensitive to both rising prices and shrinking product sizes, companies may have no choice but to offer more value in their snack offerings, especially as the holiday season approaches.
For now, consumers can enjoy a brief reprieve from the frustrating trend of shrinkflation, but this promotion only underscores a much larger issue. As inflation continues to affect everything from healthcare to retail, it’s time for companies to focus on delivering more value to customers—not just during promotions, but permanently. PepsiCo’s “bonus” bags may be a small step in the right direction, but the American consumer deserves more than temporary fixes.
At the end of the day, it’s time for businesses to realize that value and transparency should be long-term goals, not just seasonal promotions.
