SUPERMARKETS: SIZES SHRINK BUT PRICES DON'T
Shrinkflation, the new phenomenon that is putting a strain on family budgets with essential goods that are decreasing in size but not in price.
The consumer association Which? stated that products are not only shrinking in size, but manufacturers are also replacing ingredients with cheaper, poorer-quality alternatives.
Even Gaviscon has been 'hit' by this new trend; bottles of Gaviscon Heartburn and Indigestion Liquid have been reduced from 600ml to 500ml, while the price at Sainsbury's remained at £14, which is a 20% increase per 100ml.
Which? also found that the size of Sainsbury's Scottish Oats shrank from 1kg to 500g while the price rose from £1.25 to £2.10, an astonishing 236% increase per 100g. The size of Nescafé Original instant coffee was reduced from 200g to 190g at Tesco, Morrisons, and Asda, representing a 5% increase per 100g.
Buyers, upon the association's request, are reporting the various issues. In one case, Which? found that multipacks of KitKat Two-Finger Milk Chocolate Bars had dropped from 21 to 18 bars, while the price at Ocado increased from £3.60 to £5.50, a significant 53% jump.
Retail Editor Reena Sewraz stated: 'Families are already under huge financial pressure with rising food bills and Christmas spending looming on the horizon, so it can feel particularly underhand when manufacturers quietly reduce pack sizes or downgrade key ingredients.'
'Supermarkets need to be more transparent with pricing so it is easy to see what the best value for money is. This includes ensuring unit pricing is clearly visible, legible, and consistent both in-store and online, to help customers easily compare costs across different brands and pack sizes, so shoppers can be more confident they’re getting the best value for their money.'
A representative from Mondelez International, the company that produces Cadbury products, said: 'We understand the economic pressures consumers continue to face and any changes to the size of our products is a last resort for our business. However, as food manufacturers, we continue to see significantly higher production costs across our supply chain, with ingredients like cocoa and dairy, which are widely used in our products, costing a lot more than they have done in the past. Meanwhile, other costs, such as energy and transport, also remain high. This means that our products continue to be much more expensive to make and while we have absorbed these costs where possible, we still face considerable challenges. Due to this difficult environment, we have had to make the decision to slightly reduce the weight of our Cadbury Fudge and Cadbury Dairy Milk Freddo multipacks, so that we can continue to offer consumers the brands they love, without compromising on the great taste and quality they expect.'
A spokesperson for the Food and Drink Federation said: 'The price of cocoa has risen dramatically over the last year, hitting a 45-year high. Along with other rising costs, such as National Insurance increases and a new packaging tax, manufacturers are paying almost 40% more for ingredients and energy than in January 2020. Consequently, in some cases, food producers have had to make changes to products to continue providing consumers with the food and drink they love at reasonable prices.'
