If you have noticed fewer chips in a packet you bought or the size of the packet itself is smaller than it used to be, while you are paying the same amount if not more, in some cases, for that bag of chips, that’s shrinkflation. United States President Joe Biden, on Sunday (Feb 11) called on snack companies to stop shrinkflation and denounced the practice as a “rip-off.”&nbsp;

<h2>‘Give me a break’</h2>

“Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won’t notice,” said the US president in a video posted on X ahead of the annual American football championship Super Bowl LVIII.&nbsp;

He added, “Give me a break. The American public is tired of being played for suckers. I’m calling on companies to put a stop to this. Let's make sure businesses do the right thing now.”&nbsp;

However, Biden did not offer any tangible solutions or policies to address the practice.&nbsp;

WATCH |&nbsp;Voters concerned over Biden's handling of economy, finds poll

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/voters-concerned-over-bidens-handling-of-economy-finds-poll-688729/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Last year, US Senator Bob Casey, who chairs the Senate Health, Education, Labor, and Pensions (HELP) Subcommittee on Children and Families released a report which found that companies had reduced the sizes of almost all their products from toilet paper to Oreos.&nbsp;

According to Casey’s report, household paper products were 34.9 per cent more expensive per unit than they were in January 2019 and more than 10 per cent of this increase has been attributed to shrinking the sizes of rolls and packages.

The US Senator’s office has also sent letters to the trade associations which represent household consumer products and food and beverage companies demanding that they explain these pricing strategies and package size practices, as well as the impact it has on consumers.&nbsp;

<h2>Shrinkflation and US economy</h2>

Shrinkflation is when companies reduce a product’s size or quantity but keep prices the same or in some cases increase the price of that commodity. The practice is particularly common in the food and beverage industries and can help them stealthily boost profit margins.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/biden-administration-set-to-overhaul-gig-economy-with-new-worker-classification-rule-678161">Biden administration set to overhaul gig economy with new worker classification rule</a>

This phenomenon, or at least the term, has been around for more than a decade now but became popular&nbsp;during and after the COVID-19 pandemic as the global economy grappled with supply chain issues and rising raw material costs.&nbsp;

After the pandemic, inflation in the US soared prompting the Federal Reserve to increase interest rates to cool down the rising prices. The central bank hiked its benchmark rate 11 times since March 2022 but no new increases were announced in December and January.&nbsp;

The inflation in the US has reportedly slowed down from over nine per cent to 3.4 per cent, if this number holds steady, the Federal Reserve may lower interest rates, according to media reports.&nbsp;

(With inputs from agencies)

If you have noticed fewer chips in a packet you bought or the size of the packet itself is smaller than it used to be, while you are paying the same amount if not more, in some cases, for that bag of chips, that’s shrinkflation.

If you have noticed fewer chips in a packet you bought or the size of the packet itself is smaller than it used to be, while you are paying the same amount if not more, in some cases, for that bag of chips, that’s shrinkflation. United States President Joe Biden, on Sunday (Feb 11) called on snack companies to stop shrinkflation and denounced the practice as a “rip-off.” ‘Give me a break’ “Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won’t notice,” said the US president in a video posted on X ahead of the annual American football championship Super Bowl LVIII. He added, “Give me a break. The American public is tired of being played for suckers. I’m calling on companies to put a stop to this. Let's make sure businesses do the right thing now.” However, Biden did not offer any tangible solutions or policies to address the practice. WATCH | Voters concerned over Biden's handling of economy, finds poll Last year, US Senator Bob Casey, who chairs the Senate Health, Education, Labor, and Pensions (HELP) Subcommittee on Children and Families released a report which found that companies had reduced the sizes of almost all their products from toilet paper to Oreos. According to Casey’s report, household paper products were 34.9 per cent more expensive per unit than they were in January 2019 and more than 10 per cent of this increase has been attributed to shrinking the sizes of rolls and packages. The US Senator’s office has also sent letters to the trade associations which represent household consumer products and food and beverage companies demanding that they explain these pricing strategies and package size practices, as well as the impact it has on consumers. Shrinkflation and US economy Shrinkflation is when companies reduce a product’s size or quantity but keep prices the same or in some cases increase the price of that commodity. The practice is particularly common in the food and beverage industries and can help them stealthily boost profit margins. ALSO READ | Biden administration set to overhaul gig economy with new worker classification rule This phenomenon, or at least the term, has been around for more than a decade now but became popular during and after the COVID-19 pandemic as the global economy grappled with supply chain issues and rising raw material costs. After the pandemic, inflation in the US soared prompting the Federal Reserve to increase interest rates to cool down the rising prices. The central bank hiked its benchmark rate 11 times since March 2022 but no new increases were announced in December and January. The inflation in the US has reportedly slowed down from over nine per cent to 3.4 per cent, if this number holds steady, the Federal Reserve may lower interest rates, according to media reports. (With inputs from agencies)

US President Joe Biden calls on snack companies to stop shrinkflation. What is it?

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.&nbsp;

The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15.&nbsp;

Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world.&nbsp;

Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy."&nbsp;

Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics.&nbsp;

Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month.&nbsp;

Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.”&nbsp;

For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams.&nbsp;

Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice.&nbsp;

With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs.&nbsp;

Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices.&nbsp;

Although the shop could apply warnings to other products, it does not currently have plans to expand this programme.&nbsp;

(With inputs from Reuters)

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea. The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15. Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world. Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy." Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics. Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month. Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.” For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams. Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice. With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs. Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices. Although the shop could apply warnings to other products, it does not currently have plans to expand this programme. (With inputs from Reuters) WATCH WION LIVE HERE

French retail chain Carrefour takes action against "shrinkflation". Here's why

Do you feel your bag of chips is lighter? Do you feel there is less Coke in your bottle? This phenomenon is called shrinkflation. Palki Sharma tells you how customers are calling out instances of shrinkflation on social media.

Gravitas: Customers call out shrinkflation on social media

Manufacturers are quietly cutting container sizes without lowering prices across the board, from toilet paper to yoghurt and coffee to corn chips. It's known as "shrinkflation," and it's happening all around the world.It's the inflation that no one expects to see.&nbsp;

In the United States, a tiny box of Kleenex now contains 60 tissues, down from 65 just a few months ago. Chobani Flips yoghurts have been reduced in size from 5.3 to 4.5 ounces. Nestle reduced the size of its Nescafe Azera Americano coffee tins in the United Kingdom from 100 to 90 grammes. A bar of Vim dish soap in India has shrunk from 155 to 135 grammes.

Experts claim shrinkflation isn't a new phenomenon. However, it becomes more common during periods of high inflation, as businesses struggle to keep up with rising expenses for ingredients, packaging, labour, and transportation.

Als read |&nbsp;<a href="https://www.wionews.com/world/oecd-doubles-2022-inflation-forecast-in-38-nation-group-to-85-486237">OECD doubles 2022 inflation forecast in 38-nation group to 8.5%</a>

Global consumer price inflation was up an estimated 7 per cent in May, a pace that will likely continue through September, according to S &amp; P Global.

Companies might also use techniques to divert attention away from downsizing, such as labelling smaller products with eye-catching new labels.

Fritos did exactly that. Fritos Scoops "Party Size" bags used to be 18 ounces, and some are still available at a Texas grocery store. However, practically every other major retailer is now advertising 15.5-ounce "Party Size" Fritos Scoops, which are more expensive.

Watch |&nbsp;Gravitas: Is there less Coca-Cola in your can?

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-is-there-less-coca-cola-in-your-can-465275/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

When asked about Fritos, PepsiCo did not comment. It did, however, agree that Gatorade bottles are shrinking. The company has lately begun replacing 32-ounce bottles with 28-ounce bottles that are tapered in the middle to make them easier to grip.

Likewise, Kimberly-Clark—which makes both Cottonelle and Kleenex—didn't respond to requests for comment on the reduced package sizes. Proctor &amp; Gamble Co. didn't respond when asked about Pantene Pro-V Curl Perfection conditioner, which has been downsized from 12 fluid ounces to 10.4 fluid ounces but still costs $3.99.

Earth's Best Organic Sunny Day Snack Bars went from eight bars per box to seven, but the price listed at multiple stores remains $3.69. Hain Celestial Group, the brand's owner, didn't respond to an email seeking comment.

Some companies are straightforward about the changes. In Japan, snack maker Calbee Inc. announced 10 percent weight reductions--and 10 percent price increases--for many of its products in May, including veggie chips and crispy edamame. The company blamed a sharp rise in the cost of raw materials.

Also read |&nbsp;<a href="https://www.wionews.com/world/why-japan-prefers-higher-inflation-481910">Why Japan prefers higher inflation</a>

In January, Domino's Pizza announced that its 10-piece chicken wings would be reduced to eight pieces for the same $7.99 carryout price. The high cost of chicken was cited by Domino's.

According to Byas Anand, head of corporate relations for Dabur India, a consumer care and food company, "down-switching" — another word for shrinkflation — is largely done in rural regions, where people are poorer and more price sensitive. Companies simply raise prices in cities.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

(With inputs from agencies)

Manufacturers are quietly cutting container sizes without lowering prices across the board, from toilet paper to yoghurt and coffee to corn chips. It's known as "shrinkflation," and it's happening all around the world.

Manufacturers are quietly cutting container sizes without lowering prices across the board, from toilet paper to yoghurt and coffee to corn chips. It's known as "shrinkflation," and it's happening all around the world.It's the inflation that no one expects to see. In the United States, a tiny box of Kleenex now contains 60 tissues, down from 65 just a few months ago. Chobani Flips yoghurts have been reduced in size from 5.3 to 4.5 ounces. Nestle reduced the size of its Nescafe Azera Americano coffee tins in the United Kingdom from 100 to 90 grammes. A bar of Vim dish soap in India has shrunk from 155 to 135 grammes. Experts claim shrinkflation isn't a new phenomenon. However, it becomes more common during periods of high inflation, as businesses struggle to keep up with rising expenses for ingredients, packaging, labour, and transportation. Als read | OECD doubles 2022 inflation forecast in 38-nation group to 8.5% Global consumer price inflation was up an estimated 7 per cent in May, a pace that will likely continue through September, according to S & P Global. Companies might also use techniques to divert attention away from downsizing, such as labelling smaller products with eye-catching new labels. Fritos did exactly that. Fritos Scoops "Party Size" bags used to be 18 ounces, and some are still available at a Texas grocery store. However, practically every other major retailer is now advertising 15.5-ounce "Party Size" Fritos Scoops, which are more expensive. Watch | Gravitas: Is there less Coca-Cola in your can? When asked about Fritos, PepsiCo did not comment. It did, however, agree that Gatorade bottles are shrinking. The company has lately begun replacing 32-ounce bottles with 28-ounce bottles that are tapered in the middle to make them easier to grip. Likewise, Kimberly-Clark—which makes both Cottonelle and Kleenex—didn't respond to requests for comment on the reduced package sizes. Proctor & Gamble Co. didn't respond when asked about Pantene Pro-V Curl Perfection conditioner, which has been downsized from 12 fluid ounces to 10.4 fluid ounces but still costs $3.99. Earth's Best Organic Sunny Day Snack Bars went from eight bars per box to seven, but the price listed at multiple stores remains $3.69. Hain Celestial Group, the brand's owner, didn't respond to an email seeking comment. Some companies are straightforward about the changes. In Japan, snack maker Calbee Inc. announced 10 percent weight reductions--and 10 percent price increases--for many of its products in May, including veggie chips and crispy edamame. The company blamed a sharp rise in the cost of raw materials. Also read | Why Japan prefers higher inflation In January, Domino's Pizza announced that its 10-piece chicken wings would be reduced to eight pieces for the same $7.99 carryout price. The high cost of chicken was cited by Domino's. According to Byas Anand, head of corporate relations for Dabur India, a consumer care and food company, "down-switching" — another word for shrinkflation — is largely done in rural regions, where people are poorer and more price sensitive. Companies simply raise prices in cities. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. (With inputs from agencies)

‘Shrinkflation’ is on the rise: Companies reducing package size, without lowering price

Is there less Coca-Cola in your can? Does your packet of chips seem smaller? Is your shampoo running out faster? If yes, you can blame 'shrinkflation' triggered by the pandemic and the war in Ukraine. Palki Sharma explains what 'shrinkflation' means.

Gravitas: Is there less Coca-Cola in your can?

shrinkflation

Shrinkflation, News on Shrinkflation, stories on Shrinkflation, articles on Shrinkflation, Shrinkflation stories at Wion, Shrinkflation news, Shrinkflation latest news