‘Shrinkflation’ Hits Colorado Goods Amid Record Prices

COLORADO — If you've been finishing your packaged products remarkably quickly lately, you aren't alone. Dubbed “shrinkflation,” some manufacturers have been raising prices by making packages and servings smaller, a consumer advocate says.

The cost of many of those items manufacturers are downsizing are already increasing under the highest inflation in 40 years. According to the April Consumer Price Index data released by the Bureau of Labor Statistics, food prices have gone up by more than 9 percent over the past year in Denver's metro area. Prices rose by nearly 1 percent in February and March alone. CPI data for May 2021 to 2022 will be released Friday.

Now consider the findings of Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts who has documented shrinkflation on his Consumer World website for decades.

• “Party Size” bags of Fritos Scoops that used to weigh 18 ounces now weigh 15 ounces. They cost more, too.
• Chobani Flips yogurt cartons are now 4.5 ounces, compared with 5.3 a few months ago.
• Earth’s Best Organic Sunny Day Snack Bars still cost around $3.69 a box, but the number of bars per box went from eight to seven.
• Keebler cookies are getting smaller. For example, Chips Deluxe with M&Ms are shrinking from 11.3 ounces to 9.75 ounces, although in some stores they cost $1 less. Keebler E.L. Fudge Cookies shrank by 1.3 ounces but also have 20 fewer calories per cookie.

Shrinkflation is nothing new and has been used in the past by manufacturers worldwide to avoid obviously passing on to customers the increased ingredient and supply costs that come with inflation. It doesn’t just apply to food, either. For example:

• A small box of Kleenex has gotten even smaller, with 60 tissues now compared with 65 a few months ago. Kimberly-Clark, the manufacturer, also makes individual rolls of Cottonelle Ultra Clean Care toilet paper, now with 312 sheets compared with 340 before.
• A bottle of Pantene Pro-V Curl Perfection condition was downsized to 10.4 fluid ounces from 12 fluid ounces.
• Crest 3D White toothpaste tubes went from 4.1 to 3.8 ounces, a shrinkage of around 8 percent.
• Miracle-Gro All-Purpose Plant Food shrank by 12 ounces.
• Arm & Hammer laundry detergent bottles contain almost a cup less of product.

Dworsky told The Associated Press that shrinkflation is cyclical and “comes in waves.”

“We happen to be in a tidal wave at the moment because of inflation,” he said.

It can happen, but Dworsky doubts manufacturers will return to bigger packaging as inflation eases because consumers will have adjusted.

“Upsizing is kind of rare,” he told the AP.

Hitendra Chaturvedi, a professor of supply chain management at Arizona State University’s W.P. Carey School of Business, told the AP it’s clear companies are struggling with labor shortages and higher raw material costs, but he’s also troubled by an exponential rise in some companies’ profits.

For example, PepsiCo’s operating profit climbed 11 percent in 2021 and 128 percent in the first quarter.

“I’m not saying they’re profiteering, but it smells like it,” Chaturvedi told the AP. “Are we using supply constraints as a weapon to make more money?”

The Associated Press contributed reporting.