Amid a challenging period of inflation, Americans are paying more for everyday items at their grocery store. However, some of the blame for ever-increasing prices could be directed towards shrinkflation, which experts claim is ruining grocery stores.
The controversial practice has become so apparent in recent years that US President, Joe Biden, made a video calling out companies who partake in shrinkflation to stop treating US citizens like “suckers.”
What Is Shrinkflation?
Shrinkflation is a term used to define a reduction in the pack size of items, including snacks and cleaning supplies, while the price remains the same.
Essentially, consumers are paying the same price for an item despite it losing a portion of its size. The reality is Americans are getting less bang for their buck each time they visit the grocery store.
Joe Biden Calls Out Companies
Back in February, US President Joe Biden released a video just before the Super Bowl, calling out snack companies that had been participating in shrinkflation.
“I’ve had enough of call shrinkflation. It’s a rip-off,” said Biden.
Biden Vents Frustration With Snack Companies
Biden argued numerous companies that supply products to the nation’s supermarkets are “trying to pull a fast one by shrinking the products.”
The president vented his frustration with the companies, stating, “The American people are tired of being played for suckers.”
Senior Economist Speaks on Shrinkflation
Kaya Bruun, Senior Economist at Morning Consult, recently joined TheStreet to explain why Shrinkflation is increasing your weekly supermarket bill.
Bruun reveals that companies who engage in shrinkflation know precisely what they’re doing and use it as a business tactic to keep profits high.
Companies Cut the Portion Size
Speaking on shrinkflation, Bruun explains precisely what the companies are doing.
“When costs are very high, but businesses maybe don’t want to raise prices, what they’ve done instead is actually cut the portion size,” she said.
Shrinkflation Can Be Difficult to Assess
According to the financial expert, the true extent of shrinkflation can be difficult to assess.
However, Bruun admits customers have been catching on, stating, “There definitely were some instances that consumers have been noticing over the past few years.
Shrinkflation May Begin to Ease Off
Bruun suggests now that the US is experiencing a milder form of inflation, we may see less shrinkflation.
“I would expect that now that we are seeing more mild inflation and businesses selling food are not necessarily under as much cost pressure, I would expect that we maybe won’t see as much of that going forward,” she said.
Will Companies Continue to Participate in Shrinkflation?
The Senior Economist did mention it is possible companies will engage in shrinkflation once again, should their costs begin to rise.
“But of course, again, you never know if we do see another price surge on the cost side that they don’t feel they’re able to pass on to consumers, especially given how much they’ve already raised prices that certainly could be another tactic that they could look to do more of.”
Noticing Shrinkflation Requires Due Diligence, Says Editor
According to Mara Weinraub, senior lifestyle editor of groceries at food website The Kitchn, identifying shrinkflation requires a certain level of due diligence.
Tracking your cart online or by hand can certainly help you avoid falling victim to shrinkflation and save money on weekly shops.
A Layer of Deception
While shrinkflation isn’t a modern practice, Americans have begun to pay more attention to their budgets during inflation. Others simply feel they have been duped by their local grocery stores.
“There’s a layer of deception that they feel like, ‘Oh, this is something that companies are trying to do under the radar without us noticing,’” Weinraub said, per CNBC.
Avoiding the Effects of Shrinkflation
While shrinkflation has become increasingly apparent in recent years, there are several ways to avoid its effects.
Keeping tabs on weekly prices and pack sizes can ensure you don’t fall victim to shrinkflation, and if you notice a company has engaged in the practice, swap out the product for a cheaper alternative.
