00:00A bag of Doritos used to be three dollars. Now it's closer to seven. The company that makes them
00:05just lost a billion dollars over it. Twice. Here's what's happening. According to Bloomberg,
00:10Frito-Lay got so addicted to rising prices that it couldn't stop, even as its own shelves started
00:15emptying out. Now they control nearly 60% of the U.S. healthy snack market, and for over a decade,
00:20the mandate was simple. Grow revenue 5% every year, forever. Then the pandemic hit, and like
00:26everyone else, their parent company, PepsiCo, started raising prices. Consumers barely flinched,
00:31so they kept going. By 2022, prices were up 20% year over year. But they still kept going,
00:38so Walmart started cutting their shelf space. According to Insider Reports, nobody wanted to
00:43be the one who blinked. They tried shrinkflation, promotion, smaller multipacks. Nothing worked.
00:49By the time a new division head finally declared prices had to come down, they'd missed internal
00:54revenue targets by over a billion dollars for the second year in a row. Now this matters because
00:59this isn't just some chip story. It's what happens when a company mistakes pricing power for consumer
01:04loyalty. Surprisingly, most people are actually on the same page here. 42% of consumers were already
01:09buying fewer snacks because of the price. In response, PepsiCo and Frito-Lay started rolling
01:13back prices. So the central debate isn't whether these cuts were needed, it's whether this is enough,
01:19leading some shoppers to put it pretty bluntly online. A 50 cent rollback on a bag that
01:23jumped nearly 50% isn't a correction, it's a press release. PepsiCo's CEO says he'll
01:29know by summer if the rollbacks are working. So here's the big question. Have you changed
01:33what you buy in the chip aisle and would a small price drop bring you back? Let us know
01:37in the comments, check out our website, and follow us here for more.
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