We’ve all heard of shrinkflation—the sneaky tactic companies use to give us less product for the same price. Remember when your bag of chips felt nice and plump and not like you were paying for an expensive bag of air?
Well, hold onto your snacks, because something weird is happening, and it’s not another round of shrinkflation. Meet unshrinkflation, the latest twist in the snack aisle saga. 🥨
The Birth of Unshrinkflation
It sounds like something from a sci-fi movie, but unshrinkflation might just be the start of a new trend. PepsiCo recently decided to give back a few chips to its Tostitos bags after shrinking them earlier in the year. You heard that right—they actually increased the chip count. Is this a one-off marketing stunt or the dawn of a corporate apology tour?
It’s kind of like when your friend “borrows” your favorite hoodie for months and finally gives it back, acting like they’re doing you a favor. “Look! We put five more chips in the bag. Aren’t we the best?” Gee, thanks.
But hey, it’s better than nothing, right?
Why Are Companies Doing This?
In times of high inflation, shrinkflation became a go-to move. We all groaned but paid anyway, accepting less cereal, smaller chocolate bars, and skimpier toilet paper rolls. But it seems like some companies are realizing they may have gone too far.
But here’s the plot twist: instead of lowering prices, companies like PepsiCo are just adding a little more product.
Is it a PR move? Maybe. Are they hoping you’ll forget how small everything got in the first place? Probably. It’s unclear how consumers will react to unshrinkflation in the long-run but I think we can all agree that we’re happier with bags getting more full than less full, right?
Expert Opinion: Will Unshrinkflation Catch On?
We reached out to Sean Horgan, Head of Investor Relations at MoneyLion, our go-to for all things investing (and chip-related, apparently), for his take on whether more companies might adopt unshrinkflation.
“It’s definitely possible we’ll see more of this,” said Horgan. “With the economy stabilizing and consumer expectations rising, companies are under pressure to provide more value without cutting into profits. Unshrinkflation offers them a way to give back while maintaining prices. It’s like saying, ‘Look, we’re not raising prices any further, but we’ll make your bag of snacks less sad.’ Alternatively, companies could lower their prices–which would be a more straightforward way to address recent inflation. It would be interesting to see which tactic is more effective in changing consumer behavior.”
Horgan believes that while we won’t see a complete reversal of shrinkflation, this trend could spread across industries—especially where consumers are most sensitive to value. “But don’t hold your breath for larger toilet paper rolls just yet.”
Could Unshrinkflation Boost Stock Prices?
We all remember what happened when McDonald’s announced they were bringing back their $5 value meal—fans rejoiced, and the stock price got a nice little bump. Could unshrinkflation have the same effect?
It’s possible! When companies make consumer-friendly moves like unshrinking their products, it generates goodwill, and that could translate to more consumers picking the generous brand’s chips over competing brands. If successful, this could boost the generous brand’s stock price. Giving consumers a little more for their money, even if it’s a couple of extra chips, can lead to increased sales and higher brand loyalty.
Horgan agreed:
“When companies take steps that make them look more generous—especially in tough economic times—it’s a win for both the brand and the consumer. Investors see it as a sign that the company is responsive to consumer demands, and that can lead to heightened sales for the company relative to competing brands. These small wins could translate to a rising stock price if the impact translates to significantly better financial performance. .”
So, it wouldn’t be shocking to see the stock prices of these generous chip companies rise along with the chip count in your next bag. After all, a little extra generosity can go a long way in the world of business.
The Bottom Line
Unshrinkflation could be the latest corporate trend. It’s like a remix of shrinkflation, except this time, you’re getting a little bit more—and we’ll take it! Plus, if more companies hop on the unshrinkflation bandwagon, we might just see some happy investors too.
Recommended: How Does Inflation Affect Interest Rates?
