What’s really driving shrinkflation?
Have you ever been in a supermarket aisle, picked up a product and wondered if it’s suddenly diminished in size? You’re not alone. The cleverly coined term ‘shrinkflation’ has gained momentum, as Australian consumers battle with a seemingly entrenched cost-of-living crisis. Nick Foley, director of brand agency at Intangify, explains.
It’s not often a Senate Enquiry comes with a language warning, yet that’s what happened this week, when the respective CEOs of Woolies and Coles fronted ‘spin-weary’ senators in the nation’s capital.
As the already battle-scarred CEO of Woolworths, Brad Banducci, discovered, spruiking PR spin to an angry mob of senators is akin to dodging questions in a Four Corners interview focused on the duopolistic nature of ‘Colesworth’. So, what do the events of this week have to do with shrinkflation? Quite a bit, actually.
Have you ever been in a supermarket aisle, picked up a product and wondered if it’s suddenly diminished in size? You’re not alone. The cleverly coined term ‘Shrinkflation’ has gained momentum, as Australian consumers battle with a seemingly entrenched cost of living crisis.
A recent report by Deakin University found a number of products have decreased in size but increased in price. Cereal maker, Kellogg’s, captured the ire of the Deakin team with their report, noting that the popular ‘Crunchy Nut Cornflakes’ was the biggest price-riser. Up $4 in four years, while also dropping 30 grams in volume. ‘The biggest weight drop’ was Sultana Bran – falling by 150 grams since 2019. A host of other well-known Australian household brands also copped a mention for their trimmed-down offerings.
Very true Nick. But when I was working on supermarkets, liquor stores, convenience etc, decades ago it was happening back then. Maybe some senators of people should have squealed back then.