Jimu News reporter announced
From toilet paper to yogurt, from coffee to cornflakes , from potato chips to Coke, manufacturers are quietly reducing the packaging size or net content of their products without lowering prices - this Known as "contraction inflation." An investigative article by Associated Press on June 8 pointed out that this phenomenon is accelerating around the world.
"Contraction inflation" began last fall
In the United States, a small box of Kleenex sold in supermarkets now contains 60 tissues, up from 65 a few months ago, according to the Associated Press; Chobani Flips brand Yogurt has been reduced from 5.3 ounces to 4.5 ounces. In the UK, Nestlé has reduced its Nescafe Azera Americano coffee cans from 100g to 90g. In India, the weight of a bar of Vim soap has been reduced from 155 grams to 135 grams. More directly in Japan, snack maker Calbee Inc. announced in May that the weight of many of its products would be reduced by 10% and prices would rise by 10% due to sharply rising raw material costs.
For the same price, the old toilet paper on the left has more paper.
Examples like the above have appeared all over the world. This is the so-called "shrinkage inflation". Economic experts said that in fact, contraction of inflation is not new, and it basically occurs in every era of inflation. But during periods of high inflation, the phenomenon surges as companies grapple with rising costs for ingredients, packaging, labor and transportation.
Global Standard & Poor's data shows that global consumer price inflation is estimated to have increased by 7% in May, and this increase rate may continue into September.
Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts, said he has been recording contractionary inflation data for decades.
He said the contraction and expansion actually began last fall when he noticed the boxes on the cereal aisle. He could cite dozens of examples, including Cottonelle Ultra Clean Care toilet paper, which was reduced from 340 to 312 sheets per roll, and Folgers coffee bottles, which were reduced from 51 ounces to 43.5 ounces.
Faced with doubts about product shrinkage, manufacturers dare not respond
"Shrinking inflation" is a method that manufacturers are very willing to use. Dworsky explained: "Because they know that ordinary customers will notice the price increase, but they will not Will you care about net weight or other details? Small changes in packaging, such as the number of sheets on a roll of toilet paper, can also be used to distract people from shrinking products, such as putting eye-catching and beautiful new labels on the outer packaging to attract shoppers' attention. ”
Such as Pepsi potato chips, Fritos formerly labeled “party size” Scoops come in 18 ounces, and while some supermarkets still stock that size, nearly every other major chain store is now advertising 15.5-ounce "party size" Fritos Scoops, and the new size is more expensive. Of course, the new packaging does look better than the past.
Two styles of Gatorade , the left is the old 32-ounce model
The Associated Press reporter contacted PepsiCo . When asked about Fritos, the other party did not respond, but the other party admitted that the Gatorade bottle has indeed become smaller. . Pepsi 's answer is that the company recently began phasing out 32-ounce bottles and replacing them with 28-ounce bottles. The new packaging uses new technology to make the bottle tapered in the middle for easier handling. And this shift has been underway for years and has nothing to do with the current economic climate. However, when asked why the 28-ounce version was more expensive, the other party did not respond.
Similarly, two conditioners produced by Procter & Gamble have also been reduced from 12 fluid ounces to 10.4 fluid ounces, but the price is still $3.99. Procter & Gamble did not respond to inquiries.
Not only Pepsi and Procter & Gamble , but also many other companies in the food and household daily necessities industries are secretly reducing the "net content", but none of them responded to the Associated Press reporter's inquiry.
Some companies are suspected of using inflation to make huge profits
Inflation has brought economic weakness, and sometimes businesses will compete with each other, which may force manufacturers to lower prices or re-launch larger packages.But Dworsky said that "scaling is a rare occurrence" and that "once a product starts shrinking, it usually stays that way."
Chet Urdy, a professor of supply chain management at Arizona State University's Carey School of Business, said he has no doubt that many companies are currently struggling with labor shortages and rising raw material costs.
But he also pointed out that although the practices of these companies are understandable under the current situation, some companies have actually earned higher profits than before, or even increased exponentially. This finding is surprising. disturbed.
Gatorade in two styles
He cited the example of Mondelēz International , which this spring reduced the size of its Cadbury Dairy Milk bars in the UK without lowering prices due to rising cost pressures. Despite social criticism, first-quarter profits fell 15%. In contrast, PepsiCo, which took the same measures, saw its operating profit increase by 128% year-on-year in the first quarter of this year.
Chet Urdi said: "I'm not saying they are profiteering, but something doesn't look right. Are they taking advantage of inflation and reducing the supply of course to make more money?" (Pictures from the Associated Press)
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