Wednesday, September 03, 2014

Smaller package? Blame Shrinkflation

Years ago we stopped buying fresh orange juice because the packer reduced the containers from 64 ounces to 59 ounces but kept the price the same.  When I emailed the packer I received the answer that is what consumers wanted. “Our consumer research shows that most shoppers, when given a choice between a price increase or slightly less contents, prefer to hold the line on prices.”

I wonder if the “consumer research” was focus groups.  I don’t trust focus groups ever since I was in one.  The moderator kept the session going until we as a group affirmed the client’s choice of brand name, even though few of us liked it.

Today I read Yahoo’s repost of Bloomberg’s “From Chocalate to Beer, Shrinkflation Hits the Supermarket”, Simon Kennedy, Bloomberg, 2014-09-03

Former advisor to George W. Bush, Pippa Malmgren, worries that inflation pressures are rising.