Thursday, July 3, 2008

Interesting Idea Of Saving You Money - Not!

America's Shrinking Groceries
By Kate Pickert - TIME - Friday, Jun. 27, 2008

NOTE: Below is only an excerpt, but you can read the whole article by clicking the link above.

"
American supermarkets are epics of excess: it often seems like every item in the store comes in a "Jumbo" size or has "Bonus!" splashed across the label. But is it possible that the amount of food Americans are buying is, in fact... shrinking? Well, yes. Soaring commodity and fuel prices are driving up costs for manufacturers; faced with a choice between raising prices (which consumers would surely notice) or quietly putting fewer ounces in the bag, carton or cup (which they generally don't) manufacturers are choosing the latter. This month, Kellogg's started shipping Apple Jacks, Cocoa Krispies, Corn Pops, Froot Loops and Honey Smacks containing an average of 2.4 fewer ounces per box.

Similar reductions have recently happened or are on the horizon for many other products: Tropicana orange juice containers are shrinking from 96 ounces to 89; Wrigley's is dropping its the 17-stick PlenTPak in favor of the 15-stick Slim Pack; Dial soap bars now weigh half an ounce less, and that's even before they melt in the shower. Containers of Country Crock spread, Hellmann's mayonnaise and Edy's and Breyer's ice cream have all slimmed down as well (although that may not necessarily be a bad thing).

"People are just more sensitive to changes in price than changes in quantity," says Harvard Business School Professor John Gourville, who studies consumer decision-making."
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Food prices are rising faster than anticipated (Well, at least per serving or per unit price). We at TheE85Scam were not expecting major reactions until early fall. That would seem like the logical time frame from the lack of corn and other crops. But, as you can see, anticipated minimal crop returns and other issues like flooding is starting to affect consumables, especially food.

But our ingenious corporate giants have found a way to make everything all right! The article is probably right, most of us would not realize a volume change as much as we would a price increase. Although I believe it would depend upon the product. Changing a gallon for less to sell make would probably be noticed.

If they try to start selling gas by the liter. . .well, I guess just say you read it here first.

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