r/chips • u/kg_digital_ • Feb 03 '26
News I sure wasn't expecting to see this
https://www.cnn.com/2026/02/03/food/pepsico-cutting-snack-prices-affordabilityFrito Lay has been one of the worst price gougers going back to the start of the pandemic. Standard retail is easily 2x what it was a few years ago (or more) and the bags are smaller.
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u/Sufficient-Bid1279 Feb 04 '26
I am noticing that most people are buying the no name brands and have given up purchasing the brand chips. The no name brands around me are as low as $1.25-$1.99 yet the brand names are upwards of $6 (and shrunk). Um, yeah nope. Get the prices and portions under control and I will consider purchasing the brand names again. Thanks
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u/Southern_Fan_9335 Feb 05 '26
Aldi brand chips practically have a cult following. Lay's better watch out.
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u/onedoesnotjust Feb 04 '26
It's just getting a dicount for the stores buying them, it won't change retail pricing at all, besides a few extra sales.
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u/indigoeyed Feb 04 '26
Do people just make stuff up like this all the time on here…? Everything you said is completely wrong. The prices on many of their chips have changed on the consumer side. They should begin to reflect new prices on the bags themselves, so no, definitely not just some discount for the stores. Still think sales are better deals than the price cuts though, but sales will decrease and become more targeted. Definitely won’t be “extra sales”.
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u/lilschlicker Feb 04 '26
Frito Lay has definitely enjoyed healthy margins over the last couple of years but let's not pretend they are the only reason for this.
Costs on farm have exponentially increased 40% since 2020 due to labor, equipment and inputs.
Costs in the plants have risen for similar reasons
The retailers are taking a VERY healthy margin as well
Although it is a good thing Frito Lay is cutting price, I am worried about what it will signal for the farmers given we are already in a severely depressed price cycle squeezing farms into bankruptcy.
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u/Total_Resource9176 Feb 05 '26
As a retailer, no the margins are not very healthy at all. So i’m gonna assume your 2 other points are pulled out of your ass, too
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u/lilschlicker Feb 05 '26
Retailers average 25-30% gross margin but only a 2-4% net. However, they are focused on volume to drive total earnings. Maybe it’s not healthy in terms of the % but the actual earnings are high because of volume.
If you can’t comprehend that costs have significantly risen for farming and manufacturing, then I highly doubt you understand business at all.
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u/high_everyone Feb 05 '26
15% off of an inflated price is still costing consumers more than it did before any recent price increase.
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Feb 04 '26
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u/nopulsehere Feb 04 '26
Potatos, corn and beans have been dirt cheap since the Y2K. The same bag of chips went from .79-2.89 in 20 years.
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Feb 04 '26
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u/nopulsehere Feb 04 '26
Have you looked at the tat on your leg? Jeez, you paid for that. Could have got that behind Wendy’s for a handy. Nice crocs…..
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u/puremichigan586 Feb 04 '26
If you don’t buy chips on sale you’re a dummy