Businesses try to hide cost increases by diminishing food packaging

A consequence of economic hardship is the steadily decreasing size of food product packaging. The rate of food and the size of product packaging have been heading in opposite directions. As shoppers start to notice they are paying more for less, the spin from food manufacturers is that smaller food product packaging is good for the environment and more convenient for customers.
The incredible shrinking food package
Diminishing food product packaging isn’t a recent phenomenon. Corporations can’t raise prices and still make a profit when unemployment is high and wages are low. The amount of product has been reduced in the past 20 years by food manufacturers to save money. During the latest recession, food product packaging started to noticeably shrink in the summer of 2008. As joblessness has remained high for years, food packaging continues to get smaller. There has been lots of food inflation recently though. This has brought on smaller packaging and higher prices to occur. Rising costs for energy and commodities for instance corn, cotton and sugar are expected to continue, and consumers can expect to pay even more to get even less in the future.
The spin on diminishing food packaging
Most food manufacturers know that consumers will notice rising prices. It is hit and misses with shrinking quantities though. Several companies have learned that if they can shrink food without a customer noticing, most will not notice. The box will look the very same on the shelf with the same height and width but with different depths. Glass jars could have larger indentations in the bottom to reduce volume. Chips and other salted snacks will be filled with more air and less product. However as food packaging continues to shrink, businesses are resorting to clever positioning as the reduction in quantity becomes extremely hard to hide. The New York Times explains that Procter & Gamble simply put a statement on the product calling it "Future Friendly" to sell more. It said that this is the case as there is less energy, water and packaging used in the product. Tropicana reduced the size of its orange juice container with an “easy-pour lid”, which the! company said retained the value of the product with added features.
Grocery budgets and unit cost
Labels aren’t read most of the time by consumers, food manufacturer's hope. According to the Times, a can of Chicken of the Sea albacore tuna now holds five ounces instead of six and costs more. Bags of Doritos, Tostitos and Fritos contain 20 percent less product than in 2009. Would you like to protect yourself? Then just check product before getting it. Do you want to know what you are paying for? Simply look at the rate per ounce or at least the unit cost. If you save grocery receipts over periods of time, you are able to then figure out how much more money you are being charged. Most grocery receipts show the quantity of items along with the price. Month to month receipts are enough to compare prices. You’ll really recognize now much money is being lost.
Articles cited
New York Times
nytimes.com/2011/03/29/business/29shrink.html?_r=1&emc=eta1
USA Today
usatoday.com/money/industries/food/2008-06-11-shrinking-sizes_N.htm
TIME
money.blogs.time.com/2011/03/29/all-new-packaging-less-food-same-price-what-a-deal/