Saturday, 19 July 2008

Incredible Shrinking Food - the New Price Hike!

Dairylea cheese packs have shrunk from 180g to 160g. Packs still contain 8 triangles - but the shrinkage is equivalent to a 10% price hike!

Food price inflation is now so rampant that manufacturers fear pushing the price of their products much higher in case they drive buyers away. Nearly all supermarket shoppers have finally begun to check the prices of items they put in their trolleys. Consumers are trading down, experimenting with supermarket own-brands, 'basics' brands and even sampling budget supermarkets like Aldi and Lidl. They can't afford to continue simply paying more each week.

With food price inflation running close to 10% one manufacturer has come up with an ingenious new solution to raising prices without appearing to raise prices. They've kept the price the same - but shrunk the pack. The famous circular carton of Kraft's Dairylea cheese triangles is still the same diameter and still contains 8 individually wrapped servings, but the pack weight has reduced from 180g to 160g. So each slice is now thinner - but will the customer notice? Is a thinner slice less noticeable than a price hike? The reduction crudely equates to a 10% price increase - almost 10p a pack.

Keep your eyes open for other instances of incredible shrinking food packs - it's a trend which is bound to catch on.


Anonymous said...

You forgot to mention Pringles - they discovered this system several months ago. Now down to 170grammes in the same tube as before - hear how it rattles and that is why more are broken inside.

The Chief Executive said...

That's another great example - thank you - I'm sure there must be more...!