Monday, June 13, 2011

Shrinkage of Groceries to Meet Target Price

Are producers performing a rip-off the consumers, when making the content of groceries lighter while keeping the price in order not to exceed certain price points, and thereby making the products to expensive in the eyes of the consumer?

BBC writes:

"Imperial Leather soap is the latest item to shrink. Manufacturer PZ Cussons said it was reducing the size of its bars from 125g to 100g, citing a steep rise in the cost of ingredients like palm oil, to avoid a hike in the amount charged to customers.

In February, Cadbury's Dairy Milk bars went down from 140g to 120g - the equivalent of two chunks - while the recommended retail price remained unchanged.
At the same time, Toblerone bars became one triangle shorter to ensure the Poundland chain could carry on selling them for £1, blaming "increases in cost bases"."
Read the rest of the article by clicking here.

(Thanks @philipsquire)o