GET SNACKING: Tostitos and Ruffles will add 20% more chips to bags after reports of surging prices and skimping out on customers
According to The Sun, Potato chip lovers will soon have a longstanding grievance addressed, thanks to Tostitos and Ruffles.
Changes in Chip Packaging
Both brands, owned by parent company PepsiCo, confirmed this week that they will be adding more chips to their bags in response to complaints about inadequate fill levels. Starting this fall, PepsiCo will introduce “bonus” bags of Tostitos and Ruffles that contain around 20% more chips, all for the same price as standard bags. Additionally, the variety packs will now include two extra smaller bags, increasing the total count from 16 to 18, while maintaining the same pricing. However, this extra chip deal will only be available at select retailers.
PepsiCo CEO Ramon Laguarta emphasized the timing of this change during a recent earnings call, stating, “It’s the football season. There’s a lot of gatherings,” which aligns well with increased snack consumption.
Shrinkflation Concerns
Consumer complaints about fewer chips per bag, a phenomenon known as shrinkflation—when companies reduce the size or quantity of a product while keeping the price the same—have been ongoing for years. Edgar Dworsky, a consumer protection lawyer and founder of Consumer World, conducted a study in 2021 that revealed alarming trends regarding Tostitos and Ruffles. His findings indicated that the Tostitos Hint of Guacamole chips bag shrank from 12 ounces to 11 ounces, while the Hint of Lime dropped from 13 ounces to 11. Moreover, Ruffles’ Sour Cream & Onion bag quietly decreased by half an ounce in 2013.
Dworsky expressed relief at PepsiCo’s recent decision to increase chip quantities, stating, “It’s about time. Chip lovers have suffered through years of downsizing.”
Consumer Behavior and Market Trends
American shoppers have been purchasing fewer snacks amid rising inflation rates and the cost of living, with many either forgoing snacks altogether or opting for more affordable private-label chips. According to data from Bank of America, overall snack sales in the United States dropped by 0.5% during the most recent fiscal quarter compared to the previous year, with PepsiCo’s snack sales seeing a larger decline of 1%. Last month, the average cost of a bag of potato chips reached $6.46, up from $5.02 in the same period in 2020—a $1.44 increase.
PepsiCo’s Recent Acquisitions
In addition to the changes in chip packaging, PepsiCo recently announced plans to acquire celebrity-backed tortilla chips, taco shells, seasoning, and salsa brand Siete Foods for $1.2 billion. Siete Foods specializes in health-conscious products that cater to various dietary restrictions. While the deal is not expected to close until mid-2025, it marks a significant step for PepsiCo in expanding its portfolio of nutritious brands. “We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete,” Laguarta noted in a press release.