Downsizing / Shrinkflation

Here are products that have shrunken in size as a sneaky way for manufacturers to pass on a hidden price increase.

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Snap, Crackle, Poof: Kellogg’s Downsizes

Joining the ranks of products being downsized is an array of Kellogg’s cereals, including Apple Jacks, Corn Pops, Fruit Loops, Cocoa Krispies, and others.

Apple Jacks

*MOUSE PRINT: Though the boxes look identical head-on, the new box of Apple Jacks has two cups less of cereal.

How did they do it? The new boxes are narrower:

Apple Jacks side

The new version will also be 10 calories slimmer to your waist line. High fructose corn syrup was replaced with more apple juice concentrate (reducing sugar), and salt was also decreased.

Both boxes cost $3.49 during the week of July 6. That works out to 31.7 cents an ounce for the old larger box, and 40.1 cents an ounce for the new smaller one. That is a 26.4% price increase. Had the product been kept the same size, its new retail price would have climbed to $4.41.

Why did Kellogg’s downsize?  The company was refreshingly candid in their response:

“This package change is considered a price increase, in that box size is smaller. The reason for the price increase is the rising costs of ingredients and transportation. “

Consumers would clearly notice a price increase of almost a dollar, but the subtle change in packaging may go unnoticed. And even if shoppers did realize they were getting 2.3 ounces less in the box, they would not likely equate that with a nearly one dollar price hike.

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Tropicana: Please Don’t Squeeze the Customer

Manufacturers are rushing to downsize their products as a sneaky way to raise the price without the customer realizing it many times. As this proliferates, we are going to see fewer and fewer standard size products on supermarket shelves.

The quart of mayonnaise has gone by the wayside, as has the three pound tub of margarine. Now it is orange juice’s turn. Typically sold by the quart, half gallon, three quart jug, and gallon, we are beginning to see oddball sizes replace the old standard ones.

Tropicana is the latest to downsize just in the past few weeks. Their three quart jug no longer holds 96 ounces.

*MOUSE PRINT:

tropicana

Seven ounces are gone from the jug. Side by side, the difference in jug shape is obvious, but consumers rarely get to see the old and the new together on a supermarket shelf. While they may notice the shape is different, they may not realize they are getting almost a cup less of oj. According to one supermarket dairy manager, the price has stayed the same.

And as is often the case when a product is downsized, the manufacturer diverts your attention away from the net weight statement by pointing out something new. In this case, they discontinued the old screw cap and added a new flip top one. On second thought, maybe the company just found a new way to screw customers.

A Tropicana customer service representative explained the company’s position:

The downsizing from 96 to 89 ounces wasn’t a decision we took lightly. As you are aware, oil costs have skyrocketed. Oil is used to make plastic bottles, fuel our factories, and ship our juice across the country in refrigerated trains and trucks. We had the choice to either increase prices or to downsize the bottle. We chose to downsize the bottle but add value through the innovation of the SNAP cap and new bottle, which consumers were seeking.

Although you may not agree with our decision, we hope you can appreciate that they were made in the best interest of our consumers and shareholders.

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Sparkle Paper Towels: “Giant” vs. “Big” Roll Reversal

Sparkle

Scanning the supermarket aisles last week, MrConsumer spotted a display of Sparkle paper towels. Some of the single roll packages were marked “Giant Roll” and some of them were marked “Big Roll.”

While the pattern on the towels was the same, and the price was the same, the UPC codes were different. Was one replacing the other?

A quick look at the fine print revealed the difference:

*MOUSE PRINT:

Sparkle

The question was which product was the new one?  As it turns out, the smaller “giant” roll is the new one with six fewer sheets, while the larger “big” roll is the old one.  Who would ever think that the “giant” roll was smaller than “big” roll?

Noting the incongruity between the size names and actual sizes, MrConsumer asked Georgia-Pacific, the maker of Sparkle, the following questions:

“What happened, and why the change, and why the change of name?”

They responded:

Thank you for contacting the Georgia-Pacific Consumer Response Center. Georgia-Pacific places tremendous importance on the feedback we receive from our consumers.

Periodically we change packaging due to marketing decisions, along with other trends in the marketplace. We certainly attempt to keep our packaging fresh and new. Thank you for being a loyal Sparkle Towel user. I certainly hope this information helps and have a great day!

Nothing like a non-answer.

Next time they downsize, maybe the new package will be called “Gargantuan”.

UPDATE: A physical count of the number of sheets on each roll revealed that BOTH had identical amounts — 92 sheets per roll — more than the label indicated. Go figure.