Sick of ‘shrinkflation’? Tired of that $50 note evaporating the second you enter a supermarket or servo?

The following yarn from Reuters may contain some promising news that these food and beverage companies have taken the price hikes too far:

PepsiCo missed expectations for second-quarter revenue on Thursday as a series of price hikes and competition from private-label brands slowed sales of its snacks and soda mainly in the United States, its largest market.

Analysts have said that product prices, which are starting to normalize after nearly two years of multiple hikes, are still higher than pre-pandemic levels, giving packaged-food companies such as PepsiCo little room to raise prices as volumes shrink.

PepsiCo raised average product prices by 5 per cent for the quarter ended June 15, in line with the first quarter.

However, overall organic volumes slipped 3 per cent in the reported period.

Company executives said year-to-date performance across many food categories, including snacks, was subdued as consumers had become more value-conscious while spending.

Frito-Lay North America, the company’s snacking business which is also its second largest, saw volumes drop 4 per cent while the North America beverages division, its largest, saw a 3.5 per cent decline.

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