The next time you buy chips for your summer barbecue, take a close look at the packages. That's because you may be paying a whole lot more for a whole lot less.
In a recent interview, PepsiCo's CFO Hugh Johnson said the company packs flavored chips into smaller packages, but still charges you the same for larger bags of regular-flavored chips.
The Classic Lays costs $4.29 for a 10 ounce bag. Meanwhile, a nine-and-a-half ounce bag of Sour Cream and Onion still costs $4.29.
After we read this, we took a trip to Crest to see if this was true. And we found out it is.
Not only is Lays doing this, but the company that makes Ruffles also does it too. An eight-and-a-half ounce bag of cheese and sour cream Ruffles costs $2.98. And a seven-and-a-half ounce bag of Ruffles Ultimate Barbecue Chips cost the exact same amount.
That may not sound like much, but each year Americans spend millions of dollars on chips. PepsiCo also said it sells flavored and unflavored chips for the same price, but in different quantities to "keep the same price point" across the brand.
CFO Hugh Johnson admitted his company makes more money off of its flavored chips than the regular ones.