👉 Background: PepsiCo is the food and beverage conglomerate behind brands like Cheetos, Doritos, Lay’s and Smith’s and drinks such as Pepsi (duh), 7Up, Mountain Dew and that weird orange drink Mirinda.

👉 What happened: Over the past few years, PepsiCo and other companies have faced some serious backlash over the shrinkflation of their products. So now, PepsiCo has announced it will de-shrinkify some of its products - we're talking 20% more chips for the same price in a standard bag.

👉 What else: A move like this is a win for customers because not only has the size of many of Pepsi's products shrunk since 2020, its snack and beverage prices have jumped 40% at the same time.

What's the key learning?

💡While companies may just see shrinkflation as a clever marketing trick; it has a direct impact on consumer trust for the brand.

💡When companies reduce the quantity of a product, while maintaining or increasing prices, customers often feel cheated. Get this: 68% of shoppers switch brands when they notice shrinkflation, and it actually annoys consumers more than straight-up price hikes.

💡In Australia, the key culprits of shrinkflation are Jif’s bathroom cleaner, McVities biscuit, as well as lots of the Coles home brand products. It's great to see PepsiCo de-shrinkifying its products… but now we just need to wait for other brands to follow suit.