Chips and cookies have gotten too expensive. Shoppers are buying less

[modrepub]

Americans are cutting back on Doritos, Goldfish and Hostess cakes. It’s not for their health, however – it’s a sign that even small indulgences have gotten too expensive for many to afford.

“Consumers are cutting back on non-essentials and stretching the value they get out of every dollar. That’s hitting snacking,” said Chris Costalgi, a vice president at market research firm NIQ, in an interview with CNN. Forty-two percent of consumers say they are buying fewer snacks because of higher prices, according to NIQ’s February survey of 1,000 consumers.

The slowdown is showing up on food giants’ bottom lines. PepsiCo (PEP), Campbell (CPB) and JM Smucker have reported weak sales of their snack brands in earnings announcements in recent weeks.

PepsiCo, the owner of Frito-Lay, said that people bought 3% fewer snacks last quarter. “Salty and savory snack categories underperformed” the broader packaged food industry, PepsiCo said, citing the “cumulative impacts of inflationary pressures and higher borrowing costs on consumer budgets.”

https://finance.yahoo.com/news/chips-cookies-gotten-too-expensive-110052457.html

A little economic commentary pertaining to more ordinary folks instead of Wall Street talking heads.

From the comment section:

Nobody can tell me a LOT of inflation is anything but pure corporate price gouging. I have been using GU energy gel for over 10 years. All that time it was right around $24 for a box of 24 pouches. I paid $26 for it at the end of 2023 and today it is $48. There is absolutely no possibility whatsoever their costs have increased 100% in one year- it is nothing but syrup in plastic pouches packed in a cardboard box....