Why You May Be Paying The Same Price For Less Food At The Grocery Store

[left-of-center2012]

As each year passes, it feels like you get a bit less for your money. If you believe you have noticed the quantity of milk, cereal, juice, and more steadily falling while sticking to the same price, you might have witnessed "shrinkflation." According to Medium, this economic phenomenon falls under the category of inflation. With inflation, you expect to see the price of goods increasing as time goes along. Shrinkflation operates on the same principles and usually only occurs in the food and beverage industry.

In this situation, the price of an item stays the same, while the amount of the food drops. A noticeable moment of shrinkflation in recent memory occurred when Häagen-Dazs trimmed down their ice cream cartons from 16 ounces to 14 ounces in 2009. Shrinkflation can hit anywhere, but grocery stores face a particular vulnerability. It's something you may have recently noticed in your very own grocery aisle.

According to CBS News, food manufacturers have seen an uptick in food prices due to low employment numbers, supply chain shortages, and resource shortages. As a result, they have to adjust the cost of their products in order to rake in a profit, and have to decide to either raise prices on their goods or shrink their current packaging and offer consumers less at the same price. Many companies opt to slightly reduce packaging while keeping prices the same, assuming the average person won't notice a slight weight change in their foods and drinks. Shoppers have noticed shrinkflation on a wide variety of goods, ranging from paper towels to pet food (from companies like Royal Canin) to chocolate. Recently, Tillamook ice cream company announced it would reduce pint sizes from 56 ounces to 48 ounces.

As the economy starts to boom, demand for products should rise sharply, creating a supply bottleneck, so you have the potential to see shrinkflation get even worse before it gets better. For now, keep shopping smart and keep shrinkflation in mind next time you need to stock up.

Read More: https://www.mashed.com/429117/why-you-may-be-paying-the-same-price-for-less-food-at-the-grocery-store/?utm_campaign=clip

[Auggie]

1. This has been happening for decades

What's rarely reported are the "slotting fees" grocery stores charge manufacturers for selling their products. Years ago a spice manufacturer client told my team he had to budget hundreds of thousands of marketing dollars every year just just to have stores like Kroger, Safeway, H-E-B, etc. put their spices on the shelves. Stores don't make money on profit margin alone. It's the slotting fees.

[ShazamIam]

6. Yes, it has been going on for years like the once quart sizes are now 30 oz, not 32.

[jmbar2]

2. Just noticed this week with Orowheat Oatnut bread

Smaller bread slices.

Maybe it's a good thing. Makes it easier to lose some pandemic weight.

[left-of-center2012]

3. Some Orowheat Oatnut bread does come in 'small slice'

[jmbar2]

7. you're right

Just checked and mine IS small slice. I've been buying it for years and never noticed it before. Good catch.

[CrispyQ]

4. Think of all the recipes based on old standards.

You count on getting X number of cups from one can. My margarine went from 16 oz to 14 oz.

[Bluepinky]

5. The juice containers have decreased in size from 64 oz to 52 oz, for the same price.

You can’t buy a half gallon of ice cream anymore. I would rather they keep the containers the same sizes and increase the prices, for fewer trips to the store and less packaging waste.

[KT2000]

8. My fave ice cream

Tillamook, has just gone down to 1.5 quarts. Just as well as I need to quit eating it.