Brand owners shrink products but keep prices the same

by Ben Bold, Brand Republic 12-Aug-08, 15:45

LONDON - Pringles, Strongbow and Rolos are among a number of products which have shrunk in size without any change in price as food and drink manufacturers bid to counter rocketing energy and raw material costs, according to a report.

The Independent today reported that a number of manufacturers have reduced the size of products without telling consumers - among them Procter & Gamble's Pringles, Scottish & Newcastle's Strongbow cider and Nestle's Rolos confectionery.

Pringles has lowered the weight of some of its crisp tubes from 200g to 170g; cases of Strongbow have been reduced from 18 cans to 15 cans; and Rolos tubes now contain 10 sweets instead of 11.

According to the paper, non-government bodies such as the National Consumer Council are concerned that shoppers are being hoodwinked into paying more for products at a time of increasing energy, fuel and food prices.

Jeff Allder, the council's policy expert, told the Independent: "We are extremely concerned to hear about goods shrinking in size without shrinking in price, as it cheats unsuspecting shoppers already under financial pressure from rising household and motoring costs."

The Independent's story follows a report in Marketing last month that Kraft had reduced the size of its Dairylea packs but left the price unchanged.

Food and drinks manufacturers contacted by The Independent confirmed that they were cutting product sizes and added that it was a response to rocketing prices across the supply chain, such as rising dairy, oil and energy costs.

A Cadbury's spokesman told the paper: "We seek to keep our confectionery affordable in order to offer our consumers value for money, and therefore we have slightly reduced the sizes on some of the larger sharing packs, rather than directly raising prices."

Accordingly, the weight of Cadbury's Family Share chocolate bar has fallen from 250g to 230g, but the price has remained the same.

Comments

Dave Stoker - 12/08/2008

It's hardly shocking. The alternative is to go bigger (like when Curly Wurly doubled its price to 30p and increased its size by 50% or so) but this is riskier.

werwr wrwerwewr - 12/08/2008

No wonder they kept the price the same. Now businesses in the market copy each other in terms of pricing strategy. But when the economy gets back to normal things are not in the benefit of these short term objectives. Consumers are in pressure and some businesses seem enjoying some good return due to the fact of needs for their products. Let's watch this game and see when and by who it stops.

Graeme Griffiths - 13/08/2008

I think the biggest problem here is that these changes are unlikely to be reversed. I see the manufacturers point and think that given the current economic climate this is probably the least painful solution, however I do think the companies should be more open and honest about doing this. As I said though the biggest problem I see is that these changes will not be reversed when the economy picks up so in the end the consumer loses