Ripped off again


No, you’re not Alice in Wonderland—that box of Cheerios or bag of Doritos has actually shrunk.  Food package sizes are getting smaller, according to Andrew Martin this week in the New York Times.  “Aiming to offset increased ingredient and transportation costs, some of the nation’s food manufacturers are reducing the size of packages,” wrote Martin on Saturday. “The price, of course, usually stays the same.” Where ice cream, for instance, used to be sold in half-gallon containers, now many manufacturers, due in part to rising egg and milk prices, have “short-sized” (the technical term for the opposite of supersized) to 1.75 or 1.5 quarts. In a letter to consumers who’d ranted about sneaky shifting, the chief executive of Dreyer’s Ice Cream said he understood why they were mad, but that it didn’t make sense for a carton of ice cream to cost $7 or $8.  

Another ice cream president, Quintin Frey of Turkey Hill Dairy, suggested that the higher cost of transportation and ingredients could only be offset with sacrifice. The options for Turkey Hill included using cheaper ingredients, hiking up the price, or outsourcing manufacturing to a place where production would cost less; according to Martin, Frey “said that reducing the carton size was the best option among several bad choices.”

Of course, the sacrifice comes at the expense of the consumer. Since, as Martin points out, “food companies are in the business of making money,” they’re not the ones who’ll be bearing the brunt of rising costs. According to an analyst at Morningstar, packaged-food companies haven’t suffered much. “[Higher costs have] been passed on pretty successfully,” he says.

I’m all for smaller packaging, because buying food in big packages leads (in my case, anyway) to overeating and waste. But this is just another classic case of maintaining margins. I swear, if food companies could get away with selling empty packaging they would—and they’re getting closer and closer to it! The best way to check for the real price of an item, according to the article and common sense, is to examine the “unit price.” 

In another article that appeared in the Times this week, the same Andrew Martin looks at shrinking supermarkets. Safeway, Wal-Mart and Giant Eagle, following Tesco’s Fresh & Easy model, have all opened smaller-format stores, hoping to appeal to consumers who don’t have time to trawl aisles containing “50 feet of ketchup.”  Most of the new stores discussed in the article emphasize chilled and frozen prepared foods and bagged produce, another example of retailers giving an illusion of quality at a higher price.  “It’s not that fresh, but it is easy,” said one consumer.  Natch.

TrackBack

TrackBack URL for this entry:
http://www.plentymag.com/blog-mt1/mt-tb.cgi/5527


Post a comment

Issue 25



Sign up for Plenty's Weekly Newsletter