Downsizing / Shrinkflation

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

Updated every Monday!   Subscribe to free weekly newsletter.

Holy Mackerel, StarKist Downsizes Tuna

Something is fishy at StarKist. In a move that will likely ripple through the entire tuna industry, the company has just downsized their tuna cans.

*MOUSE PRINT:

A customer service representative for StarKist explained that tuna prices have reached an all-time high, and coupled with the increased cost of transportation and other ingredients, they had to make a change. Instead of increasing the price, she said, they decreased the can size.

Putting an environmental spin on the downsizing, the company said it will save two million gallons of water a year, while only taking out two teaspoons of tuna from each can.

Tuna has a long history of being downsized. Once upon a time, tuna came in 7 ounce cans (at least solid white did). Then, cans were downsized to 6.5 oz., then 6-1/8 oz., and finally to 6 oz. maybe a decade ago. All the while, what had originally consisted of solid pieces of chunk light tuna fish, became a mush of too little fish and too much ocean.

[Note to readers: Because we are seeing more and more of these sneaky, backdoor price increases, Mouse Print* will only bring you news like this when a major product category is downsized.]

Updated every Monday!   Subscribe to free weekly newsletter.

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.

Updated every Monday!   Subscribe to free weekly newsletter.

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.