More companies are making smaller products to offset rising production costs – FOX13 News Memphis
Shrinkflation: Companies are making smaller products to offset rising production costs Have you started noticing smaller packaging when shopping? (DTM)
Companies try to offset the cost of doing business by not technically raising the prices we used to pay for products, but now we get less for the same amount of money.
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It’s called “shrinkflation” and you’ll notice it if you’re careful when shopping.
The Associated Press reported that a small box of Kleenex that held 65 tissues a few months ago now holds five less.
The Chobani Flip yogurt came in 5.3 ounce packages but is now 4.5 ounces.
But groceries aren’t the only items that are shrinking.
Restaurants also make smaller portions.
Bloomberg reported that Domino’s Pizza reduced its boneless wings from 10 pieces to eight. Domino’s announced the change in January in response to rising chicken prices. However, the takeout restaurant still charges the same delivery price of $7.99 as for the 10-piece size, the PA reported.
Bloomberg also said Subway doesn’t serve the same amount of roast chicken in its wraps and sandwiches.
Industry experts say companies are betting that consumers will accept fewer products than they would if the items were priced higher.
Nailya Ordabayeva, professor of marketing at Boston College, explains that this is how our brain processes information.
“People tend to underestimate changes in object size,” Ordabayeva said. Bloomberg. “It’s quite convenient for companies to change size, change size, more than price, because people notice price changes more.”
“It comes in waves. We happen to be in a tidal wave right now because of inflation,” said Edgar Dworsky, consumer advocate and former assistant attorney general of Massachusetts. PA.
Dworsky actually started noticing a contraction in the cereal aisle last fall. Smaller cereal boxes began to appear on the shelves around this time.
Dworsky said he also found Cottonelle Ultra CleanCare toilet paper went from 340 sheets per roll to 312.
Folgers went from a 51 ounce container to a 43.5 ounce. The coffee company said the containers still make up to 400 cups because they use new technology that produces a lighter coffee bean.
Pepsi Co., the parent company of Gatorade, has upgraded the sports drink from 32-ounce bottles to 28-ounce bottles that taper down the middle. The design is meant to be easier to hold and, according to company officials, has been planned for years and is unrelated to the current economy. But when the PA asked why the drinks are more expensive for less volume, the company did not answer.
Procter & Gamble has changed its Pantene Pro-V Curl from 12 fluid ounces to 10.4 fluid ounces and still charges $3.99 for the smaller bottle, and at the request of the PA on the price difference, did not answer.
Not every company hides the technical price increase.
Japanese snacks company Calbee Inc. announced it was reducing product weight by 10% while raising prices by 10% to offset rising raw material costs, PA reported.
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