PepsiCo reverses shrinkflation strategy after customer boycott

Published October 16, 2024 2:40pm ET



Frito-Lay’s parent company, PepsiCo, said it’s adding chips back to bags after shrinkflation wound up costing the company when consumers left Lay’s and Doritos on shelves.

Inflation prompted the company to dial back the volume of its products, such as fewer chips in a bag or fewer bags in a pack. However, it learned an expensive lesson as consumers decided to purchase other brands or stop buying altogether. Now, PepsiCo is reportedly increasing the amount of chips in bags by 20% and adding two bags to its multipacks.

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