Downsizing / Shrinkflation

Here are products that have shrunken in size as a sneaky way for manufacturers to pass on a hidden price increase.

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Study: Consumer Attitudes About Shrinkflation

Purdue University just surveyed 1,200 consumers about food and grocery shopping (see full report) and has come up with some interesting insights into shoppers’ attitudes about shrinkflation.

Over 75-percent of the respondents said they noticed food packaging getting smaller. In particular, it was in these categories where they have seen the most changes:

Types of products shrinking

Some other interesting findings from the study include:

— Only 15-percent always check the weight of a product.
— Only 16-percent always check the unit price.

I am surprised that these numbers are even that high.

Shoppers were also asked which they preferred in the context of a snack product — whether manufacturers should just keep the product the same size but raise the price OR shrink the product and keep the price the same.

Shrink or don't shrink?

Lastly, here is how participants feel about a requirement that manufacturers disclose on the package any size changes, whether they switch brands when a product shrinks, and more:

Shrinkflation attitudes

Feel free to share your opinions in the comments.

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Are Tostitos and Other Chip Brands Really Reversing Shrinkflation?

A few weeks ago, Sen. Elizabeth Warren and Rep. Madeleine Dean wrote to the CEOs of several corporations, including PepsiCo, accusing them of a pattern of profiteering off consumers by shrinking their products and charging the same or higher prices. We’ve covered various PepsiCo products including Tostitos downsizings over the years.

Then last week, breathless headlines announced that PepsiCo, which also makes Ruffles, Doritos, Lay’s and other brands, was reacting to these accusations of shrinkflation, and was now going to add 20% more chips to certain bags.

PepsiCo headlines

In the CNN story, the company said:

A PepsiCo spokesperson told CNN that Tostitos and Ruffles “bonus” bags will contain 20% more chips for the same price as standard bags in select locations. PepsiCo is also adding two additional small chip bags to its variety-pack option with 18 bags, the spokesperson said.

*MOUSE PRINT:

Tostitos Bonus PackConsumer World AI Mock-up

Don’t jump to conclusions that PepsiCo has seen the light, is caving into governmental pressure and consumer anger, and plans to upsize all their products. PepsiCo is simply coming out with some “bonus” bags on some products in some areas it appears. By definition, a “bonus pack” is a temporary promotion whereby the new package has some additional content compared to the regular size. They did not announce a general upsizing of their products.

So, enjoy the extra chips while they last.

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How Skimpflation Works in Restaurants

In October last year, Red Robin announced an upgrade — that it had a “new and improved lineup of gourmet burgers” that were “juicier and more flavorful.”

This August, Red Robin further announced a limited time promotion for a gourmet cheeseburger and unlimited fries for $10. No doubt, this is a pretty good deal given fast food prices and portion sizes today.

Red Robin $10 promotion

One Red Robin regular, WiseSofa1748, commented on their burgers in the following post, saying they are not as good as they used to be because the reason they are juicier is that they are fattier.

The new burgers they use suck. The old ones they had for years and years were so good. I asked the store manager when I last went and she told me it was really to cut costs, they went to a less lean, cheaper cut of beef that allowed it to be “juicier” aka more fat and slightly bigger bc its a crappier cut. It doesn’t taste near as good. Same for the bun and cheese she said, both were swapped out and Red Robin claimed it was for taste but as always it was to save a buck.

Are the consumer and the manager right? We did a little detective work to compare the current nutritional disclosures for their gournet cheeseburger with the previous listing from a year earlier, excerpted below.

*MOUSE PRINT:
Red Robin Nutritional comparison

Indeed, the amount of fat content went up, while the amount of protein went down. Since the company announced that it was making its burgers bigger and juicier last year, that could account for the increase in fat. However, the amount of protein should have gone up too if the company maintained the same lean to fat ratio.

We made multiple requests of the company to find out if they made the alleged changes to their burgers, but they did not respond.

While the media focuses on shrinkflation a lot these days, skimpflation is even more insidious. With shrinkflation, at least you can objectively discover when a product shrinks. But with skimpflation, product tweaks or reformulations are not generally announced or easy to discern.

We don’t know the recipes used by restaurants, the exact portion size you normally get, the grades of meat they buy, the quality or quantity of all the ingredients used in a dish, etc. So it is even easier to tinker with these things and most consumers would be none the wiser.

If you spot an example of skimpflation, please send the details and any proof you can unearth to Edgar (at symbol) MousePrint.org. Thanks.