Families facing financial challenges due to rising costs are now encountering a new trend called ‘shrinkflation’, according to consumer group Which?. This phenomenon involves major brands reducing the size or quality of popular products while keeping the prices constant. Consumers have noticed this tactic in items like toothpaste, coffee, and heartburn medicine at supermarkets recently.
For instance, Aquafresh Complete Care Original Toothpaste was priced at £1.30 for 100ml but now costs £2 for 75ml at Tesco, Sainsbury’s, and Ocado, representing a 105% price increase per 100ml. Similarly, Gaviscon Heartburn and Indigestion Liquid bottles shrank from 600ml to 500ml, yet the price remained at £14 at Sainsbury’s, resulting in a 20% rise per 100ml.
Additionally, Sainsbury’s Scottish Oats decreased from 1kg to 500g, with the price climbing from £1.25 to £2.10, marking a 236% rise per 100g. KitKat Two-Finger Milk Chocolate Bar multipacks saw a reduction from 21 bars to 18, with the price at Ocado increasing from £3.60 to £5.50.
Quality Street chocolate tubs have also experienced downsizing, from 600g to 550g, while the price for the smaller tub at Morrisons rose from £6 to £7 this year. Moreover, Cadbury’s multipacks of Freddo and Fudge bars decreased from five bars to four at Morrisons, Ocado, and Tesco, maintaining the price at £1.40.
Retail editor Reena Sewraz from Which? expressed concerns about the impact of these changes on consumers, especially amidst rising living costs and approaching holiday expenses. She emphasized the importance of supermarkets being transparent about pricing to enable customers to make informed choices and get the best value for their money.
Representatives from Mondelez International and Nestle attributed these adjustments to significant cost increases in ingredients like cocoa and other production expenses. They highlighted the ongoing efforts to manage rising costs while maintaining product quality and affordability for consumers.
The Food and Drink Federation also acknowledged the challenges faced by manufacturers due to soaring ingredient prices and other cost escalations, leading to necessary product modifications to balance quality and affordability for consumers.