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Re: Inflation snapshots: December 2009
The MSM finally gets around to reporting it. Only 5 months late. They're getting better! At least they've stopped talking about deflation.
The MSM finally gets around to reporting it. Only 5 months late. They're getting better! At least they've stopped talking about deflation.
From a consumer perspective, the process looks like this: 
And on and on.
From a consumer products complaint management perspective, the stealth inflation looks like this.
Remember, these letters were written at the depth of the recession when purchasing power of cash holders is supposed to be rising:
They are both rolls of Northern bathroom tissue. "Big rolls." The one on the left came from a package I bought last month. The one on the right I purchased this month.
From: The Incredible Shrinking Toilet Paper Roll Rip-Off
Here’s a photo of the downsized Breyers cartons posted at consumerist.com
For as long as this ice cream lover can remember, Breyers Ice Cream was sold in half-gallon (64 ounce) cartons. First, Unilever downsized the half-gallon carton to 1.75 quarts (56 ounces), which was a 12.5% reduction. Now, they have downsized the 1.75 quart carton to 1.5 quarts (48 ounces). This means the original half-gallon carton of Breyers is now 25% smaller at 1.5 quarts. The 1.25 quart carton of Breyers Ice Cream can’t be too far away.
To make things worse, unless we’re mistaken, the price of a carton of Breyers Ice Cream has gone up while the size has shrunk. But even at the same price per carton, a 25% decrease in product equals a 33% increase in price-per-ounce. For instance, even if the cost of a carton of Breyers held steady at a hypothetical price of $4.00, you used to get 64 ounces for that $4.00. But now, you will pay $5.33 for 64 ounces (one-and-a-third cartons), a 33% price increase. Factor in the increase in the price of a carton, and you’re probably paying 40% or 50% more than you did, say, a year ago.
From: Unilever Shrinks Its Products Again: Breyers Ice Cream Now 25% Smaller!For as long as this ice cream lover can remember, Breyers Ice Cream was sold in half-gallon (64 ounce) cartons. First, Unilever downsized the half-gallon carton to 1.75 quarts (56 ounces), which was a 12.5% reduction. Now, they have downsized the 1.75 quart carton to 1.5 quarts (48 ounces). This means the original half-gallon carton of Breyers is now 25% smaller at 1.5 quarts. The 1.25 quart carton of Breyers Ice Cream can’t be too far away.
To make things worse, unless we’re mistaken, the price of a carton of Breyers Ice Cream has gone up while the size has shrunk. But even at the same price per carton, a 25% decrease in product equals a 33% increase in price-per-ounce. For instance, even if the cost of a carton of Breyers held steady at a hypothetical price of $4.00, you used to get 64 ounces for that $4.00. But now, you will pay $5.33 for 64 ounces (one-and-a-third cartons), a 33% price increase. Factor in the increase in the price of a carton, and you’re probably paying 40% or 50% more than you did, say, a year ago.
The maker of Mars and Snickers has shrunk the size of the bestselling chocolate bars in what amounts to an under the counter price rise.
While the bars have been reduced by 7.2 per cent from 62.5g to 58g, their prices have remained the same.
From: Shrinking Mars bar: Size cut by 7.2% but price stays the sameWhile the bars have been reduced by 7.2 per cent from 62.5g to 58g, their prices have remained the same.
Once upon a time “bath size” bars of soap were all five ounces. Most have now been downsized to 4.5 ounces.
The latest move, however, is to go even smaller. Dial for Men is a prime example.
*MOUSE PRINT: The 4.5 ounce bar is now 4.0 ounces — over 10% smaller
The latest move, however, is to go even smaller. Dial for Men is a prime example.
*MOUSE PRINT: The 4.5 ounce bar is now 4.0 ounces — over 10% smaller
OLD NEW
So these three packs are 12 ounces instead of the old 13.5 ounces, but still priced the same.
From: Dial Soap: The Incredible Shrinking Bar From a consumer products complaint management perspective, the stealth inflation looks like this.
Remember, these letters were written at the depth of the recession when purchasing power of cash holders is supposed to be rising:
SMALLER PACKAGING FOR SAME PRICE
From: "kellogg@casupport.com"
Sent: Tuesday, September 23, 2008 7:30:58 PM
Subject: Re: Consumer Affairs 013649751A
Mr. X,
Thank you for contacting us regarding our recent reduction of our carton sizes on select Kellogg's cereal. We appreciate the opportunity to respond. The Kellogg Company remains committed to providing consumers with healthy and nutritious foods at a fair price. As you know, recent economic pressures have affected all of us as we see higher prices on goods and services we purchase for our families and homes. As a company, we also face significantly higher prices for ingredients, energy, packaging materials, labor, equipment, freight and warehousing. To help offset those increased costs, Kellogg is reducing the size of some of our products to help consumers. We hope we may count you among our valued family of consumers in the years ahead as we continue to offer you delicious and nutritious products at an affordable price.
Sincerely,
Consumer Affairs Department
013649751A
Kellogg North America
PO Box CAMB
Battle Creek, MI 49016-1986
Posted Thu September 25, 2008 12:00 pm, by DEBORAH B. written to Kellogg CompanyFrom: "kellogg@casupport.com"
Sent: Tuesday, September 23, 2008 7:30:58 PM
Subject: Re: Consumer Affairs 013649751A
Mr. X,
Thank you for contacting us regarding our recent reduction of our carton sizes on select Kellogg's cereal. We appreciate the opportunity to respond. The Kellogg Company remains committed to providing consumers with healthy and nutritious foods at a fair price. As you know, recent economic pressures have affected all of us as we see higher prices on goods and services we purchase for our families and homes. As a company, we also face significantly higher prices for ingredients, energy, packaging materials, labor, equipment, freight and warehousing. To help offset those increased costs, Kellogg is reducing the size of some of our products to help consumers. We hope we may count you among our valued family of consumers in the years ahead as we continue to offer you delicious and nutritious products at an affordable price.
Sincerely,
Consumer Affairs Department
013649751A
Kellogg North America
PO Box CAMB
Battle Creek, MI 49016-1986
From: Deborah
To: kellogg@casupport.com
Cc: Clark
Sent: Thursday, September 25, 2008 7:29 AM
Subject: Fw: Consumer Affairs 013649751A
Consumer Affairs Department
Per your email above: “As you know, recent economic pressures have affected all of us as we see higher prices on goods and services we purchase for our families and homes. As a company, we also face significantly higher prices for ingredients, energy, packaging materials, labor, equipment, freight and warehousing.”
It is interesting that the response by Kellogg to the economic situation is to reduce package size while maintaining cost. As a family, we also face the same higher prices - and paying the higher cost of gas to commute to work and school is significant. Our response is somewhat different however. Since it is not possible for us to reduce the hours that we work and still get paid the same amount of money (which would allow us time to go out and get a second job (Wow, I wonder if my boss would go for that), we are forced to reduce our spending. That means finding the best deals we can on all goods that we buy, and purchasing smaller quantities for the same price we paid for larger packages is NOT an option. I will look for product that is on sale, less expensive, and not repackaged in smaller quantities just so that YOU can continue making the same amount of money, paying C Level staff a ridiculous salary and annual bonuses.
Shame on Kellogg.
Deborah
There’s a member thread here that documents the stealth inflation phenomenon.
To: kellogg@casupport.com
Cc: Clark
Sent: Thursday, September 25, 2008 7:29 AM
Subject: Fw: Consumer Affairs 013649751A
Consumer Affairs Department
Per your email above: “As you know, recent economic pressures have affected all of us as we see higher prices on goods and services we purchase for our families and homes. As a company, we also face significantly higher prices for ingredients, energy, packaging materials, labor, equipment, freight and warehousing.”
It is interesting that the response by Kellogg to the economic situation is to reduce package size while maintaining cost. As a family, we also face the same higher prices - and paying the higher cost of gas to commute to work and school is significant. Our response is somewhat different however. Since it is not possible for us to reduce the hours that we work and still get paid the same amount of money (which would allow us time to go out and get a second job (Wow, I wonder if my boss would go for that), we are forced to reduce our spending. That means finding the best deals we can on all goods that we buy, and purchasing smaller quantities for the same price we paid for larger packages is NOT an option. I will look for product that is on sale, less expensive, and not repackaged in smaller quantities just so that YOU can continue making the same amount of money, paying C Level staff a ridiculous salary and annual bonuses.
Shame on Kellogg.
Deborah
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