Food Shrinkflation has been a hot topic this year as more and more shoppers feel squeezed by growing grocery bills. Now, shoppers have had enough…
And it looks like food companies are finally listening.
Outrage At Food Shrinkflation
As if the growing prices due to grocery inflation weren’t bad enough…
Thisy ear companies have employed two new tactics to deal with rising production costs…
Those tactics have been dubbed Shrinkflation and Skimpflation.
Shrinkflation is when a company reduces the size or volume of a product while keeping the same price…
Skimpflation is when a company uses a cheaper material/ingredient in their product that worsens the customer experience.
IN BOTH OF THESE STRATEGIES… CONSUMERS GET LESS BANG FOR THEIR BUCK.
Companies try to convince consumers that shrinkflation is necessary to avoid raising prices…
But shoppers aren’t buying it.
And when brands DO raise prices, shoppers are outraged.
But the more that shoppers noticed food shrinkflation, the more they avoided it. More shoppers have increasingly pulled back on discretionary spending…
Leading to revenues dropping for many companies. In response, many restaurants began introducing value menus to try and court more customers.
And the tide began turning against food shrinkflation.
Companies Walking It Back
Finally, it seems like more brands are giving into consumer pressure when dealing with food shrinkflation…
Earlier this year, audiences online nearly revolted…
When Whole Foods changed the recipe of its famous Berry Chantilly cake.
The controversial changed caused such an uproar that the grocery chain informed fans they would revert it to its original recipe.
And recently, PepsiCo, the owner of chip brands Lay’s, Doritos, Tostitos, and Ruffles…
Announced that they would be taking steps to undo shrinkflation in their brands.
THE COMPANY IS LAUNCHING “BONUS” BAGS THAT CONTAIN 20% MORE CHIPS IN THEM FOR THE SAME PRICE…
And they will include two more small bags in their 18-bag variety packs.
Industry analysts predict that these moves might encourage other brands to do their part to revert food shrinkflation.
It might seem like the fight against food inflation is coming to an end…
But we’ve yet to see other brands follow in these footsteps.
Be Great,
GCTV Staff
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