Manufacturers cut content, but prices stay same

IT IS the Alice in Wonderland shrinking effect that has left shoppers wondering whether they need their eyes tested.

New research has proved it is no optical illusion – popular supermarket products really are getting smaller, while the cost stays the same.

Consumer watchdog Which? has revealed a list of products on high street store shelves which are now smaller in size but have not had any similar drop in the price at the checkout.

Among those to decrease in size or weight are jars of Loyd Grossman Balti Curry Sauce, which have gone from 425g to 350g; tubs of Dairylea Cheese Spread, which are 40 grammes lighter than in the past, and Pampers Baby Dry Maxi, which now offers two fewer nappies in a pack for the same price.

All now cost the same or more per 100g than in the past.

“We think these shrinking products are little more than hidden price rises. Consumers are sick of food manufacturers and supermarkets trying to treat their customers like idiots,” said Richard Lloyd, Which? executive director.

The majority of the companies questioned by Which? following the research admitted that they had cut products due to a need to keep prices down in the face of rising wholesale costs.

However, others insisted there was a more specific reason why their products had been shrunk.

Heinz claimed that the larger can of Farmers’ Market soup was an inconvenient size for lunch and said that it had added more vegetables to compensate, while Nestlé said the change in formulation to its Cheerios Crunchers meant the product no longer fitted in the box at the original weight.

Professor Leigh Sparks, head of retail studies at the University of Stirling, said companies had to make a decision between upping prices past a point which meant consumers would be reluctant to buy – while dealing with rising costs due to high inflation.

The Consumer Price Index measure of inflation currently stands at 3.4 per cent – well below September’s peak of 5.6 per cent – but still well ahead of the Bank of England’s 2 per cent target.

“The question is, would consumers prefer to see their budget managed by the manufacturer and the retailer by them shrinking the product but retaining the original price, or pay the higher price which is necessary due to inflation?” he said. “Some research has shown that generally, consumers are more likely to continue buying a product when the pack size is altered instead of the price being raised.”

Manufacturers claimed that supermarkets dictate the final price – but generally admitted that they had not dropped the official recommended retail or wholesale price.