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business Thursday 9 June 2022
No, you're not imagining it — package sizes are shrinking

By DEE-ANN DURBIN Alex Aspacher does a lot of
AP Business Writer the grocery shopping and
It’s the inflation you’re not meal planning for his fam-
supposed to see. ily of four in Haskins, Ohio.
From toilet paper to yogurt He noticed when the one-
and coffee to corn chips, pound package of sliced
manufacturers are quietly Swiss cheese he used to
shrinking package sizes buy shrank to 12 ounces
without lowering prices. but kept its $9.99 price tag.
It’s dubbed “shrinkflation,” Now, he hunts for deals or
and it’s accelerating world- buys a block of cheese
wide. and slices it himself.
In the U.S., a small box of Aspacher said he knew
Kleenex now has 60 tissues; prices would rise when
a few months ago, it had he started reading about
65. Chobani Flips yogurts higher wages for grocery
have shrunk from 5.3 ounc- workers. But the speed of
es to 4.5 ounces. In the U.K., the change — and the
Nestle slimmed down its shrinking packages — have
Nescafe Azera Americano surprised him.
coffee tins from 100 grams “I was prepared for it to a
to 90 grams. In India, a bar degree, but there hasn’t
of Vim dish soap has shrunk been a limit to it so far,”
from 155 grams to 135 Aspacher said. “I hope
grams. we find that ceiling pretty
Shrinkflation isn’t new, ex- soon.”
perts say. But it proliferates Sometimes the trend can
in times of high inflation as reverse. As inflation eases,
companies grapple with competition might force
rising costs for ingredients, manufacturers to lower
packaging, labor and their prices or reintroduce
transportation. Global con- larger packages. But Dwor-
sumer price inflation was sky says once a product
up an estimated 7% in May, has gotten smaller, it often
a pace that will likely con- stays that way.
tinue through September, “Upsizing is kind of rare,” he
according to S&P Global. Bottles of Gatorade are pictured, left, a 32 fluid ounce and 28 fluid ounce, in Glenside, Pa., said.
“It comes in waves. We Monday, June 6, 2022. Hitendra Chaturvedi, a pro-
happen to be in a tidal Associated Press fessor of supply chain man-
wave at the moment be- ber of sheets on a roll of toi- didn’t respond when asked veggie chips and crispy agement at Arizona State
cause of inflation,” said Ed- let paper. Companies can why the 28-ounce version is edamame. The company University’s W.P. Carey
gar Dworsky, a consumer also employ tricks to draw more expensive. blamed a sharp rise in the School of Business, said he
advocate and former as- attention away from down- Likewise, Kimberly-Clark cost of raw materials. has no doubt many com-
sistant attorney general sizing, like marking smaller — which makes both Cot- Domino’s Pizza announced panies are struggling with
in Massachusetts who has packages with bright new tonelle and Kleenex — in January it was shrinking labor shortages and higher
documented shrinkflation labels that draw shoppers’ didn’t respond to requests the size of its 10-piece chick- raw material costs.
on his Consumer World eyes. for comment on the re- en wings to eight pieces for But in some cases, compa-
website for decades. That’s what Fritos did. Bags duced package sizes. the same $7.99 carryout nies’ profits — or sales minus
Dworsky began noticing of Fritos Scoops marked Proctor & Gamble Co. price. Domino’s cited the the cost of doing business
smaller boxes in the cereal “Party Size” used to be 18 didn’t respond when asked rising cost of chicken. — are also increasing expo-
aisle last fall, and shrinkfla- ounces; some are still on about Pantene Pro-V Curl In India, “down-switching” nentially, and Chaturvedi
tion has ballooned from sale at a grocery chain Perfection conditioner, — another term for shrink- finds that troubling.
there. He can cite dozens in Texas. But almost every which downsized from 12 flation — is mostly done in He points to Mondelez Inter-
of examples, from Cot- other big chain is now ad- fluid ounces to 10.4 fluid rural areas, where people national, which took some
tonelle Ultra Clean Care vertising “Party Size” Fritos ounces but still costs $3.99. are poorer and more price heat this spring for shrinking
toilet paper, which has Scoops that are 15.5 ounc- Earth’s Best Organic Sunny sensitive, said Byas Anand, the size of its Cadbury Dairy
shrunk from 340 sheets per es — and more expensive. Day Snack Bars went from head of corporate com- Milk bar in the U.K. with-
roll to 312, to Folgers cof- PepsiCo didn’t respond eight bars per box to seven, munications for Dabur In- out lowering the price. The
fee, which downsized its when asked about Fritos. but the price listed at mul- dia, a consumer care and company’s operating in-
51-ounce container to 43.5 But it did acknowledge tiple stores remains $3.69. food business. In cities, come climbed 21% in 2021,
ounces but still says it will the shrinking of Gatorade Hain Celestial Group, the companies simply jack up but fell 15% in the first quar-
make up to 400 cups. (Fol- bottles. The company re- brand’s owner, didn’t re- prices. ter as cost pressures grew.
gers says it’s using a new cently began phasing out spond to an email seeking “My company has been By comparison, PepsiCo’s
technology that results in 32-ounce bottles in favor comment. doing it openly for ages,” operating profit climbed
lighter-weight beans.) of 28-ounce ones, which Some companies are Anand said. 11% in 2021 and 128% in the
Dworsky said shrinkflation are tapered in the middle straightforward about the Some customers who have first quarter.
appeals to manufactur- to make it easier to hold changes. In Japan, snack noticed the downsizing are “I’m not saying they’re prof-
ers because they know them. The changeover maker Calbee Inc. an- sharing examples on social iteering, but it smells like it,”
customers will notice price has been in the works for nounced 10% weight re- media. Others say shrink- Chaturvedi said. “Are we
increases but won’t keep years and isn’t related to ductions — and 10% price flation is causing them to using supply constraints as
track of net weights or the current economic cli- increases — for many of its change their shopping a weapon to make more
small details, like the num- mate, PepsiCo said. But it products in May, including habits. money?”q