[A Navy Vet]

"1/10th penny in food cost, all other costs of packaging, transportation and wholesaling remain the same. Not sure I understand the logic."

I don't think you understand what goes into manufacturing huge amounts of edibles, many shipped world-wide.. The processing of food products from raw materials (agriculture&meat) is a huge cost. But then what do I know? I only had 3 small owned and operated companies, so I may not know either.

[gov_bean_ counter]

Reduced variable costs result in lower unit costs. Allows manufacturers to continue to earn a workable per unit profit margin.

Economics meets cost accounting

Economic theory will tell us how long this strategy is sustainable.

[bhl]

Where did I go wrong? No one doubts the price of corn and labor is going up and food factories are expensive. But shaving 1/3 ounce is not the best way to increase revenue. You can’t keep removing chips forever. A price hike would be far easier and less expensive to implement.

This is just a marketing gimmick to take advantage of free publicity with regards to inflation. So people will talk about their chips and hopefully the story will “go viral.”