Cost of living: Product ‘shrinkflation’ tipped to continue as shoppers warned to ‘get used to’ higher costs – Michmutters
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Cost of living: Product ‘shrinkflation’ tipped to continue as shoppers warned to ‘get used to’ higher costs

We’ve all been hearing a lot about inflation but it’s shrinkflation that shoppers really need to worry about.

Shrinkflation is where manufacturers charge the same or even more for smaller servings, betting on most consumers not noticing the difference.

And with rate rises and cost-of-living pressures hitting many hard households, these reductions are offering less and less value for money

Consumer group Choice has been getting tip-offs from peeved Aussies about products that have been downsizing, recently verifying Smith’s crinkle cut potato chips had been trimmed by 5g — or about three chips — to 170g per pack.

Shrinkflation is where manufacturers charge the same or even more for smaller servings, betting on most consumers not noticing the difference.
Camera IconShrinkflation is where manufacturers charge the same or even more for smaller servings, betting on most consumers not noticing the difference. Credit: The West Australian

There has also been a 20g drop in large packs of Red Rock Deli potato chips to 165g and boxes of Crunchy Nut Corn Flakes have shed 30g.

And sweet-toothed shoppers have been left with a sour taste with Cadbury family-sized chocolate blocks going from the once-standard 250g to 180g.

The latest to drop weight is Maltesers, with a spokeswoman for manufacturer Mars Wrigley saying it was “facing unprecedented cost pressures” like many Australian businesses.

“From time to time, external factors make it necessary for product changes so that we can continue to ensure the availability of our products to all Australians,” she said.

Choice spokesman Liam Kennedy said shrinkflation was a global trend that was expected to continue.

“Most of the examples that we see, a lot of the tips we receive, are in that snack area, cereals,” Mr Kennedy told The West Australian.

But it has hit pet food too, with bags of Purina One cat food contracting by 100g to 1.4kg but costing more.

Choice says 'shrinkflation' is a global trend expected to continue.
Camera IconChoice says ‘shrinkflation’ is a global trend expected to continue. Credit: Rebecca Le May/The West Australian

Owner Nestle blamed that on recipe changes and higher costs for raw materials, packaging and transport, Mr Kennedy said.

“A lot of business are feeling that right now,” he added.

Elizabeth Jackson, a food supply chain systems expert at Curtin University, warned shoppers to expect ongoing pain at the checkout, mainly due to high transport costs, saying the current inflation spike was reminiscent of that seen in the oil crisis of 1973.

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