News

Shrinkflation hits US shoppers

October 17, 2021 01:01 PM


Twitter Share Facebook Share WhatsApp Share

More air in that bag of chips? Fewer flakes in your cereal box? You're not imagining it: "Shrinkflation," a tactic used by industry to hide price increases, is back in vogue.

Facing the post-pandemic inflationary surge, partly fueled by bottlenecks in global supply and trouble finding workers, companies are under more pressure to deal with rising costs.

Consumer advocate Edgar Dworsky, who has followed the phenomenon he calls downsizing for quarter of a century, says he has identified dozens of products in recent months that have seen sneaky price increases.

He found goods ranging from Charmin toilet paper rolls to Cheerios cereal, to Royal Canin canned cat food, where the size or weight has shrunk, but the price remains the same. 

In September, food giant General Mills, maker of Cheerios, flagged the soaring costs for materials and labor to justify conventional price increases but also changes to "PPA" -- price pack architecture -- a technical term for the adjustment of size or quantities.

While these small changes in size could pass largely unnoticed in the past, the internet era puts them in the spotlight.

On the social network Reddit, the "Shrinkflation" group has 14,500 members, who share their discoveries though mostly tongue-in-cheek rather than to protest.

"It's definitely more insidious because shrinkage, at least for me, is less noticeable than a price increase," Jonathan Khoo, 44, a software designer in Oregon, told AFP. 

But "it's the delay in finding out that you've been played" that makes the tactic "much worse" than a straightforward price hike, he said.

Pierre Chandon, professor of marketing at the Sorbonne University's INSEAD behavioral lab, said shoppers feel they have been scammed because "most consumers have a mistaken idea that the quantities are standardized, regulated," which is only true for a few with rare exceptions like alcohol.

"Since we assume that the weight is fixed, we do not look at it," Chandon said.

- 'Bad shoppers' -

Fellow Oregon resident Brian Johnson winced when he recently saw that a container of trendy local ice cream brand Tillamook lost six ounces, dropping to 48 ounces (to 1.42 liters from 1.65 liters).

"I know that companies are doing this because consumers have a price point for items based on years of experience. They expect to buy a container of something within a price range," the 52-year-old data scientist said. 

Dworsky, known as "Mr Consumer," said companies "don't take a step like that lightly."

"They did the calculation" and if they get a handful of complaints "they send a couple of bucks in coupons to the consumer to get them to keep buying." 

In fact there are no documented examples of shoppers revolting against a product that has shrunk, and even the members of the Reddit group hardly ever call for a boycott of a brand. 

"Perhaps we have learned that this is normal and that if we are fooled, it is because we have been bad shoppers," Chandon explained.

Anand Krishnamoorthy, a marketing professor at the University of Central Florida, said that even after the cost spikes have receded, "there is no incentive" for brands to revert to their original size.

Examples of shrinkage can be seen in many other sectors -- from tiny urban apartments to legroom on airplanes -- but "where we notice it the most is consumer packaged goods."

"Consumers don't understand sizing as much as they do prices," Krishnamoorthy said.

Chandon, the Sorbonne professor, sees a silver lining in the health benefits of smaller package sizes.

"We know that the more there is, the more we eat," he said, and now "we are returning to what were normal portions not so long ago."



Most Read

  1. Maryam Nawaz can wear uniform! Maryam Nawaz can wear uniform!
  2. Here is all about Madiha Rizvi’s second husband Here is all about Madiha Rizvi’s second husband
  3. Madiha Rizvi ties the knot again Madiha Rizvi ties the knot again
  4. Zara Noor Abbas inspired by Rani Mukerji Zara Noor Abbas inspired by Rani Mukerji
  5. Humayun Saeed and Saboor Aly under fire for close interaction in public Humayun Saeed and Saboor Aly under fire for close interaction in public
  6. Two patients die, injuries of 12 others multiplied after roof collapse at Gujrat hospital Two patients die, injuries of 12 others multiplied after roof collapse at Gujrat hospital

Opinion

  1. Legacy of Indian military subjugation in Kashmir
    Legacy of Indian military subjugation in Kashmir

    By Dr Ghulam Nabi Fai

  2. Islamabad becoming the hub of international diplomacy
    Islamabad becoming the hub of international diplomacy

    By Salim Bokhari

  3. Insights into the Pakistan Stock Exchange's Recent Record High Triumph
    Insights into the Pakistan Stock Exchange's Recent Record High Triumph

    By Zulfiqar Ali Mir

  4. IMEC to sabotage CPEC
    IMEC to sabotage CPEC

    By Dr Asif Channer

  5. 1947 TO FORM 47
    1947 TO FORM 47

    By Dr Asif Channer

  6. Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....
    Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....

    By Ali Ramay