Shrinkflation is once again taking place in Aussie grocery stores.
👉 Background: We know the cost of living is increasing... and we've all seen the memes about the price of lettuce. Let alone the fact that inflation in Oz rose 5.1% in March ⬆️.
👉 What happened: Now, a new report shows some companies have been a little cheeky with their products recently. Their prices have mostly remained the same, but their product sizes have reduced.
👉 What else: Mars choccie bars are down 5 grams but still cost $2... And Twisties have actually reduced serving sizes by 10 grams while charging shoppers 20 cents more 😤. The experts call it 'shrinkflation'.
💡 Shrinkflation is another term for package downsizing of supermarket items. It typically happens when margins get tight and companies want to try to maintain profits.
💡 There are two ways for a company to increase its profit margin:
Shrinkflation is a sneaky but effective way for companies to mask a price increase by reducing the size of the product.
💡Cadbury is the master of shrinkflation. In fact, since the 2000s Cadbury blocks have shrunk around 44% from 320 grams to just 180 grams.
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