Masked price increases-same price, less quantity-are increasingly in vogue among Big Food giants. A few months ago the consumer organization FoodWatch had reported 7 cases of deceptive packaging in France, where food was present in quantities up to 68 percent smaller than the capacity of the packages.
The Hamburg Consumer Center is dedicating the ‘Shame of the Year‘ contest to this phenomenon. Mondelez, Mars and Ferrero among the finalists.
Masked price increases, shrinkflation
Reducing the amount of product in the unchanged price package is the most devious way to raise prices without consumers noticing. Few in fact look at food price by unit, although such indication is mandatory as seen above.
Shrinkflation
– from the crasis of shrinkage and inflation-is the name given to this practice. (1) So obnoxious that it has been the subject of a contest, for 7 years now, among Hamburg consumers. And here is the shortlist of five nominees for the ‘Shame of the Year 2020‘ award.
Mondelez, Santa Claus & Milka Easter Bunny
The deception of Mondelez-one of the world’s top consumers of palm oil-is superlative. Milka brand chocolate molds have both decreased in weight and increased in size. Same apparent price (per unit sales), +36% the actual price (per unit sales) of Santa Claus and Easter Bunny, compared with the previous year.
The Corporation(here its brands in Italy) had already tried its hand at shrinkflation with Toblerone, snatching some ‘teeth’ from it at an unchanged price. But consumer revolt then prompted Mondelez to partially backtrack, with quantity restored and price increased.
Seitenbacher, fruit muesli
The German Seitenbacher Group , on the other hand, made a sleight of hand. In presenting ‘Fruit Müesli’ as if it were a new product, he simply cut its contents by a quarter. 1000 g to 750 g.
In addition to shrinkflation, Seitenbacher’s weight reduction was accompanied by a price increase. As a result, the price increase is 75%. And there is little consolation in the company’s claim, which states on its website‘We want our customers to live a hundred years in good health.’
Jack Link’s, Bifi Mini Salami
Double whammy also for fans of Bifi Mini Salami The Original from U.S.-based Jack Link’s, which specializes in jerky. From 2020, the sausage packaging looks richer, six pieces instead of five.
However, German consumers noted that the addition of a sausage was matched by a reduction in the weight of each piece and an increase in the selling price. When all is said and done, +16% inflation per unit.
Kinder Ferrero
Instead, Ferrero subtracted two bars from the Kinder Chocolate package, but did not reduce the price.‘Just five years ago the number of bars had been increased from eight to ten and the price of chocolate increased,’ consumers in Hamburg recall. Who note how the two-step changes led to a substantial price increase, +30%.
The palm oil gobbler meanwhile announces a new round of shrinkflation. In the British and Belgian markets, Nutella jars will be downsized (50g less, starting with the 400g pack) without a price reduction. The group complains of increased production costs and the need to pass it on to consumers in this way.
Mars – Whiska’s, cat food
Another poor producer struggling to make ends meet is the U.S. multinational Mars, which produces pet food in addition to candy. Just the Whiskas Crunchy Bags cat food can has been lightened to an unchanged price, from 72 to 60 grams (-20%).
The impact on the daily spending of feline friends is indeed onerous.‘If cat owners adhere to Mars’ new food recommendation, the price increase is even around 50 percent,’ reports the Hamburg Consumer Center.
Consumers do not sleep
The practice of disguised price increases greatly irritates consumers. In 2020, the Hamburg Consumer Center received about 3,000 complaints about this phenomenon. And it is from this mass of online protests that the 5 nominees for the ‘Shame of the Year‘ award were drawn.
The election of the worst is imminent. Voting results will be announced on 25.1.21. Those who wish to participate can follow this link.
Marta Strinati and Dario Dongo
Notes
- The UK’s Institute for Statistics calculated that shrinkflation was applied to 2,500 products over 5 years. V. Sean Poulter, It’s shrinkflation! How 2,500 products have shrunk in the last five years… and don’t believe firms’ excuses – Brexit is NOT to blame. The Daily Mail, 7/24/2017
Professional journalist since January 1995, he has worked for newspapers (Il Messaggero, Paese Sera, La Stampa) and periodicals (NumeroUno, Il Salvagente). She is the author of journalistic surveys on food, she has published the book "Reading labels to know what we eat".
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
