Food Theory: They're STEALING Your Food!

Summary

This video exposes the sneaky practice of 'shrinkflation,' where food companies reduce the size of products without raising prices, tricking consumers into paying the same for less. Through various examples like smaller Cadbury eggs, reduced chip bag weights, and watered-down sauces, the video shows how companies manipulate packaging to hide the loss in quantity. The host urges viewers to be vigilant about packaging changes, pay attention to unit pricing, and use public pressure to hold companies accountable. The video emphasizes that consumer awareness and activism can help combat this deceptive practice and stop companies from exploiting customers.

Takeaways

• 😀 Shrinkflation is the practice of reducing product sizes while keeping prices the same, leading to consumers paying more for less without realizing it.
• 😀 Companies often disguise shrinkflation by changing packaging designs or offering misleading claims, making it difficult for consumers to notice the decrease in size.
• 😀 Consumer awareness of shrinkflation is critical to stopping it. Keeping track of the price per ounce or unit can help identify when products are shrinking.
• 😀 Harvard Business School research shows that consumers are more sensitive to price increases than changes in product size, making shrinkflation an effective strategy for companies.
• 😀 One of the earliest examples of shrinkflation occurred with Cadbury Cream Eggs in 2007, which became smaller, and the company denied the change until publicly exposed.
• 😀 Doritos reduced the amount of chips per bag without altering the price, resulting in fewer chips for the same cost, a common tactic in shrinkflation.
• 😀 Products like orange juice and peanut butter have shrunk in size, with slight alterations in packaging that make the changes less noticeable to consumers.
• 😀 Watered-down products, like Aldi's tikka masala sauce, are another way shrinkflation manifests, with companies reducing calories or serving sizes while keeping prices the same.
• 😀 Public pressure can force companies to reverse shrinkflation practices. For example, Toblerone reduced its bar size by 25% in 2014 but reversed the change after customer backlash.
• 😀 Consumer Watchdog groups, such as MousePrint.org, track examples of shrinkflation across various products like raisins, soap, and toilet paper, which have all shrunk over time.
• 😀 Shrinkflation tends to be a permanent change. Once companies reduce product sizes, they rarely go back to the original amounts, making it a long-term trend.

Q & A

What is shrinkflation and how does it affect consumers?

Shrinkflation is a strategy where companies reduce the size or quantity of a product without lowering its price, making consumers pay the same for less. This tactic is insidious because many consumers don't notice the reduction in product size.

How did Cadbury respond when their shrinkflation was exposed?

When Cadbury's shrinking product sizes were exposed, they initially denied the change, claiming that the consumers had grown bigger. After public backlash, they later changed their statement to acknowledge that product sizes varied by market.

What role does deceptive packaging play in shrinkflation?

Deceptive packaging often disguises shrinkflation by changing the product's shape or labeling it as 'new look,' while the actual content inside may be reduced. The goal is to prevent consumers from noticing that they are getting less product for the same price.

Why is shrinkflation harder for consumers to detect?

Shrinkflation is difficult to detect because the product changes are subtle, often involving small reductions in quantity or size that consumers don't notice. Additionally, the price tag remains the same, and many consumers don’t check the price per ounce or unit.

How do companies justify shrinkflation to consumers?

Companies often justify shrinkflation by citing inflation or rising production costs. For example, they may claim that the price of ingredients has increased, so they reduced the amount in the package to maintain the same retail price.

What example is given to show how shrinkflation affects products like Doritos?

The example of Doritos shows that despite the bag's appearance remaining the same, the net weight has decreased, leading to fewer chips in each bag. This is an example of how companies shrink products without changing their visible packaging.

What is the psychological reason that makes shrinkflation effective?

Research shows that consumers are more sensitive to price increases than to reductions in product size. As a result, if companies keep the price the same but reduce the quantity, consumers are less likely to notice and change their purchasing behavior.

How does Skippy demonstrate shrinkflation with peanut butter jars?

Skippy used shrinkflation by keeping the size and appearance of their peanut butter jars the same but altering the bottom of the jar. Over time, the indentation at the bottom deepened, reducing the amount of peanut butter without the consumer noticing.

What is a key strategy to avoid falling victim to shrinkflation?

A key strategy to avoid shrinkflation is to focus on the price per ounce or unit rather than just the total price. By doing this, consumers can spot when the price for the same amount of product increases or when they get less for the same price.

What example is given about Aldi's Tikka Masala sauce to highlight shrinkflation?

Aldi's Tikka Masala simmer sauce illustrates shrinkflation by changing the ingredients. The serving size decreased from seven servings at 60 calories each to six servings at 50 calories, resulting in a 29% reduction in total calories despite the jar appearing larger.

What can consumers do to combat shrinkflation according to the video?

Consumers can combat shrinkflation by staying informed, checking packaging and unit prices, and calling out companies when they notice deceptive practices. Public pressure and activism can sometimes force companies to reverse shrinkflation practices, as seen with Toblerone in 2014.