2024-01-20 09:21:31
Published20. January 2024, 10:21
Price increases: “Shrinkflation”: This is how food manufacturers deceive you
The packaging becomes smaller, the price goes up: manufacturers increase prices without customers noticing. Some examples of this from Switzerland.
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The highlight of shrinkflation for manufacturers is that customers often don’t even notice that they are paying more.
IMAGO/angle of view
Manufacturers cite additional costs for energy, raw materials and transport as the reason for the price increases.
DPA/Fabian Sommer
The French supermarket chain Carrefour has now started using signs to inform its customers regarding shrinkflation.
Photo by Hugo Clement on Unsplash
Shrinkflation: That’s what it’s all regarding
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Pay more for less content: Shrinkflation has also arrived in Switzerland.
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The hidden price surcharges are often difficult for consumers to recognize.
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Manufacturers cite the additional costs for energy, raw materials and transport as the reason for the price increases.
If a pack of chips suddenly contains fewer chips, but you pay the same amount or even more for them, this is called shrinkflation. The US economist Pippa Malmgren was probably the first to use the term, but the phenomenon has long since reached Switzerland.
Hidden markups
The highlight of shrinkflation for manufacturers is that customers often don’t even notice that they are paying more. In France, retailers sometimes warn users regarding hidden price increases, like this «Tip» reported, but not yet in Switzerland.
Shrinkflation in Switzerland
The magazine gives some examples for Switzerland:
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Alnatura’s Pizza Margherita costs 3.3 francs at Migros, but since last summer it has only been available in 300 grams instead of 335 grams. Surcharge: twelve percent.
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A pack of express rice from Ben’s Original only contains 220 grams instead of 250 grams, but the price has only fallen by 20 centimes. Surcharge: seven percent.
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Mars and Snickers are now available in packs of five instead of six, and a bar now costs 59 instead of 54 centimes. Price premium: nine percent.
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Anyone who buys the vegan Alpro yogurt from Danone only gets 400 grams instead of 500 grams. But the price only fell by 20 cents. Markup: 16 percent.
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110 grams of Doritos from Pepsico were available at Aldi at the end of 2023 for 1.89 francs. A year before that it was 125 grams. Surcharge: 14 percent.
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The margarine Becel Pro from Upfield shrank from 250 to 225 grams, but the price went up by ten cents. Markup: 13.13 percent.
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A large pack of Trésor Choco Nut from Kellogg’s only contains 620 grams instead of 660 grams, and the price remained at 6.95 francs. Markup: 6.45 percent.
This is how the manufacturers justify the price increases
Manufacturers cite the additional costs for energy, raw materials and transport as the reason for the price increases. The producer Mars, which has made “Classic Meals” cat food more expensive by almost a third, gives another reason: it justifies the higher prices with a new composition of ingredients (see box).
Food manufacturers are stingy when it comes to the quality of the ingredients
In addition to inflation and shrinkflation, there is also skimflation: with higher prices, less content and cheaper ingredients, some food multinationals benefit threefold. You can read more regarding this here.
France plans disclosure law
Retailers abroad sometimes disclose the price increases, including the French supermarkets Carrefour and Intermarché as well as Netto in Germany. France is even planning to oblige retailers to report shrinkflation to their customers.
“Ktipp” writes that it has asked Aldi, Lidl and Migros regarding this and has not received any comments. Coop stated that it would publish price increases in the “Coop-Zeitung” if they were “unavoidable”.
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