Consumption: when brands reduce the quantity of products, but not the price

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France 2

Article written by

G.de Florival, C.Theophilos, Q.Gilles, M.Cazaux, N.Leydier, B.de Saint Jore – France 2

France Televisions

When certain brands discreetly reduce the quantity of their food products, without changing the price, this is called “shrinkflation”. This is a way for companies to deal with rising production costs.

Packages half empty when opened or products smaller thanexpected, but prices that remain the same. To maintain their margins and profits, some manufacturers do not hesitate to reduce discreetly. It’s a strategy to think about an American giant the food industry, PepsiCo, for its packets of crisps. On the shelves, many consumers have already noticed the phenomenon.When we open the package, we realize that the candies actually only fill half of the package.“, says a young man.

The practice has a name: the “shrinkflationwhich consists in reducing the quantity of a product to hide the increase in the price per kilo. A crucial method for manufacturers, while production costs are exploding. Some manufacturers justify these changes by creating new recipes. This practice is legal, as long as the price and the correct net weight are indicated on the packaging. According to an association of consumer2% of food products would be affected by the “shrinkflation”.

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