shrinkflation

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CT Bill Would Require Shrinkflation Notices for Products

shrinkflationA bill to regulate shrinking products was recently filed by the Connecticut Attorney General. It is one of the first of its kind pieces of state legislation in the United States. (Some other countries have laws requiring disclosure when a product is downsized.)

The proposed law in Connecticut does not ban shrinkflation, but is a disclosure law requiring notice to shoppers if a product now contains less than it did but the price has not dropped proportionately.

In particular, it says in abbreviated form:

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(Effective July 1, 2025) (a) No vendor shall downsize, or reduce the quantity, amount, weight or size of, any consumer product, unless such vendor: (1) Reduces the price charged for such consumer product by an amount that is commensurate with such downsizing or reduction; or (2) Clearly and conspicuously discloses that such vendor has made such downsizing or reduction during the twelve-month period beginning on the date on which (A) the downsized consumer product is first sold, or (B) the consumer product is first sold in such reduced quantity, amount, weight or size.

That last part is not clear, but what is certain is that the “vendor” has to clearly disclose that the product has been downsized. Missing are details like what form the notice has to take, where it has to be displayed (like on the package or shelf), and what specifically has to be told to the consumer other than the fact that the product now contains less. Presumably regulations by the attorney general’s office will have to be promulgated, and I would advocate that they should require a statement that includes the old size or the percentage reduction in size.

Who is responsible for the disclosure? According to the bill, the “vendor” is. “Vendor” is defined as including the distributor, manufacturer, retailer, supplier or wholesaler. So both the manufacturer and retailer would have responsibility for making the required disclosure.

Good luck getting this bill passed, Connecticut. Expect huge opposition from the businesses affected.

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Oy Vey: Passover Matzo Packages Shrink

Shoppers may do a double take when checking out the Passover food display at some local supermarkets this year because the traditional five-pound bundles of some brands of matzo have been downsized to just four pounds.

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Manischewitz matzo packages4-lb. and 5-lb. Manischewitz matzo bundles

Both Manischewitz and Yehuda, two leading brands of kosher foods, just introduced four-pound packages of this Passover staple in addition to their traditional bundle which has five one-pound packages and has been around for decades. (In the late ’50s or early ’60s, my father used to take me to the Horowitz-Margareten matzo factory in New York to buy five-pound packages of matzah.)

“Passover matzo has been one of the few products that has escaped shrinkflation until now,” explained Consumer World founder Edgar Dworsky. “On top of that, some stores are raising prices too, so it is a double whammy for shoppers.”

Kayco, which owns Manischewitz and distributes the Yehuda brand, explained that “consumer need” drove the decision to offer both four and five-pound bundles, with individual supermarkets deciding which they will carry. It also said that raw materials and packaging costs have gone up.

Stop & Shop, a leading supermarket chain in the Northeast, where the new four-pound packages were first spotted in Boston, said in an emailed statement in part:

Stop & Shop is now stocking both 4- and 5-pound matzos at our stores for our customers who celebrate Passover. What we heard from many of our customers is that they didn’t utilize all of the product in the 5-pound bundles, which comes at a higher price point, so we now offer both sizes to help our customers save money and reduce waste. … Like other retailers across the country, we have faced increased costs from our Kosher suppliers in 2024 so customers may see higher prices on some items.

In fact, the new four-pound Manischewitz and Yehuda matzo bundles are on sale at Stop & Shop in Boston for $5.99 this year, a dollar more than last year’s price for the five-pound size. That translates to a 50-percent price increase per pound. For decades, Stop & Shop and some other chains have sold five-pound packages for only $4.99 perhaps as a loss leader. The five-pound bundles are $6.99 this year at Stop & Shop, for example – a 40-percent price hike. (See update at the end of this story.)

4 and 5 pound matzo at S&S in Brookline, MA4-lb and 5-lb matzo bundles at a Brookline, MA Stop & Shop

Not all major matzo manufacturers have followed Kayco’s lead. The makers of Streit’s and Aviv matzo say they have not downsized their brands. For its part, a manager at Aron Streit, Inc. said in reply to a customer’s question, “I am not sure what our competitors are thinking or doing, but we are still only selling five-pound bundles and definitely are not changing that anytime soon.”

The manufacturer of Aviv matzo, a popular Israeli brand sold in the United States, speculated that perhaps Kayco was jumping on the shrinkflation bandwagon.

Not all supermarket chains have moved away from the traditional size and price for Passover matzo. Star Market and Shaw’s in New England and Jewel-Osco in Chicago, divisions of Albertsons Companies, for example, still offer five-pound packages of Manischewitz, Yehuda, and Streit’s matzo for $4.99 on sale. And they are even offering an additional $1-off digital coupon on Streit’s.

5-lb matzo bundles for $4.99 at Star Market in Boston

A spot-check of Passover product sale prices this year at Stop & Shop in New Jersey compared to their sale prices last year reveals some significant price increases.

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Passover price comparison

Shrinkflation has hit other Passover products in recent years. Yehuda matzo farfel went from a nine-ounce canister to an eight-ounce box. And Goodman’s macaroons, which were traditionally sold in 10-oz. cans, were downsized to nine ounces last year and came packaged in resealable bags.

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Goodman's macaroons

April 5 UPDATE

Stop & Shop in Monroe Township, New Jersey, in their April 5 – 11 circular, advertised some of the key items in our comparison at a lower sale price:

Updated Passover prices

And Stop & Shop stores in the Boston area also lowered some prices as of April 5. For example, four and five-pound bundles of matzo as pictured above are one dollar less.

If you spot a newly downsized product, please send details and pictures to: Edgar(at)MousePrint.org .

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French Supermarket to Place Warning Labels on Shrinking Products

In a first of its kind move, Carrefour, the second largest retail chain in France, just announced that starting today (September 11) it is going to warn shoppers about products that have been downsized.

How are they going to do it? They are planning to place five-inch by five-inch warning labels on products that they believe have been subject to shrinkflation (where the product has gotten smaller without there being changes to it and the customer is paying more).

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Carrefour shrinkflation warning

That roughly translates to: This product has seen its weight decrease and the price from our supplier increase.

Carrefour is initially targeting a Nestle-made coffee capsule called Dolce Gusto Grande Intenso, which has risen in price by 8% while shrinking in volume, Lay’s potato chips, Lipton ice tea, and Amora mayonnaise.

The company hopes this tactic will help them negotiate lower prices for shoppers.

In another pro-consumer move, the French parliament is set to debate a proposed law soon that would require manufacturers to clearly label products that been reduced in size but the packaging has remained the same.

We salute Carrefour for being the first retail chain to stand up to product manufacturers who try to pass on these sneaky price increases to consumers. Will any US supermarket chain have the guts to do the same thing?

Next week: We’ll have a new round of products where shrinkflation has taken its toll.