PepsiCo is adding more chips to bags after 'shrinkage' complaints

PepsiCo said it was increasing the volume of some packages of the chip, after being accused last year of “shrinking” or reducing product sizes without lowering prices.

On the company's earnings call last week, PepsiCo CEO Ramon LaGuerta said the food and beverage giant will offer bonus packs of Tostitos that contain 20% more chips and throw in two or three more bags of Doritos into the multipack as a way to add. Value for consumers.

The move comes after Pepsi reported a surprise drop in revenue in the third quarter and cut its annual forecast as North American consumers limit their spending on soda and savory snacks while opting for cheaper private-label brands.

'Shrinkage' cheats consumers as companies seek profits while inflation rises

“The cumulative effects of inflationary pressures and higher borrowing costs over the past few years have continued to affect consumer budgets and spending patterns,” LaGuerta said.

PepsiCo Lays brand chips are seen for sale at a Dollar General department store in Simpsonville, Kentucky on August 12, 2021. (Luke Sharrett/Bloomberg via Getty Images/Getty Images)

Pepsi, which owns several snack brands including Frito-Lay, last year called on French supermarket chain Carrefour to reduce quantities of some products while raising prices.

Inflation leads to contraction

Carrefour said bottles of sugar-free peach-flavoured Lipton ice tea produced by PepsiCo have shrunk from 1.5 liters to 1.25 litres. Meanwhile, the price per liter has increased by 40%.

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Carrefour has added price warnings to several food products in an effort to pressure manufacturers to lower their prices.

Fox Business has reached out to PepsiCo for comment.

Fox Business's Daniela Genovese and Reuters contributed to this report.