Brexit not to blame for ‘shrinkflation’
Thousands of products have been getting smaller – and it was going on long before the EU referendum
SUPERMARKET items have been getting smaller for at least five years, official data show, as manufacturers were accused of using Brexit as an excuse for short-changing customers.
Statistics published yesterday by the Office for National Statistics revealed that more than 2,500 consumer products have shrunk over the past five years, despite being sold at the same price.
This so-called “shrinkflation” effect has hit goods ranging from chocolate bars and toilet rolls to coffee and fruit juice, with food products most heavily affected, it said.
Manufacturing giants including Premier Foods, which owns brands such as Mr Kipling, Hovis and Bisto, have blamed shrinking products on Brexit fallout since the vote to leave the EU.
The claim is that rising commodity prices and the higher cost of importing ingredients, thanks to the weakening value of the pound, are forcing them to choose between putting up prices or shrinking packs. But the ONS dismissed the referendum result as a reason for a perceived boom in post-brexit shrinkflation, as the number of products affected annually has been relatively consistent since 2012.
“Our analysis doesn’t show a noticeable change following the referendum that would point to a Brexit effect,” it said.
It also cast doubt on whether the cost of raw materials, on which manufacturers have often blamed price hikes, has actually increased.
The European import price of sugar has been falling since the middle of 2014, and reached a record low in March 2017, it said.
Instead, experts said the shrinkflation effect was a lasting impact of the recession as manufacturers avoided upsetting “price sensitive” consumers by choosing to quietly shrink packs instead of charging more. Mark Jones, a food and drink solicitor at Gordons law firm, said: “Shrinkflation was born out of the recession and has gathered staggering pace since 2009. The ONS’S report confirms this. Against the backdrop of a weak economy, commodity prices have been rising over the last five years.
“The recession made people very price sensitive and you can see the evidence of that by looking at the impressive growth of discount retailers in the last five years. No retail sector has grown faster.”
In recent months, consumers have been angered by changes to a number of popular products, including Toblerone, Doritos and Maltesers.
Alex Neill, Which? managing director of home products and services, said: “We have found that many popular household and food products have shrunk over the years, often with the price staying the same or increasing.
“Manufacturers and retailers should make any changes to their products clear, otherwise they risk people feeling cheated.”
Meanwhile health campaigners said that although smaller packs were generally better for people’s diets, shrinkflation could backfire as consumers cotton on to the practice.
Graham Macgregor, chairman of Action on Sugar, said: “When we are trying to tackle obesity, and especially childhood obesity, reducing portion size is a really good strategy.
“I think the size of these products should be reduced, but these companies shouldn’t be charging the public the same amount of money for them. I think that could backfire if people end up feeling deceived.” ♦ Lattes, smoothies and juice cartons will have their sugar content cut, or portion sizes will shrink, health officials say.
Public Health England (PHE) is to set new targets to reduce the calories in sweetened dairy drinks, juices and smoothies, following talks with manufacturers.
It follows plans to cut sugar content in a range of products – including biscuits, cakes and puddings – by 20 per cent by 2020.
Health officials have yet to agree what the new drinks targets will be, with talks expected to continue over the summer.
The new measures are aimed at drinks that are not covered by the sugar tax, which comes in next year, with companies paying up to 8p in duty on a can of fizzy drink.