According to a recent article in the Canadian Business Daily, Canadian industry observers pointed out that in recent years, many processors have added more air in their packaging and reduced the number of products in the packaging when producing food such as potato chips. Production costs increase while keeping retail prices unchanged.
The article is excerpted as follows:
This "sly" approach to pleasing price-sensitive consumers has been around for decades. Sylvain Charlebois, a professor of food distribution and policy research at Dalhousie University in Canada, recently warned that this practice of reducing food in packages so as to save a few cents per package is now becoming more universal. This practice also has a special term called "reducing inflation".
Chalbova said that this practice can be seen in potato chips, biscuits and almost all bagged or boxed foods.
A study by the UK National Statistics Office found that since 2012, the packaging of nearly 3,000 food products has been reduced. According to estimates from other markets in the US and Europe, 15% to 20% of food packaging has been shrunk in the past 5 years.
At present, Canada has no comparable data, but Chalbova believes the situation is similar. He said that for many companies, this is a viable option to deal with rising raw material prices, salaries and energy prices, and to remain competitive in the international food industry.
He said that in the package of potato chips, the change in the ratio of air to potato chips is easy to see, but there are some methods that are not easy to be seen by consumers. For example, some bottled foods seem to have the same bottle size, but the bottom of the bottle was originally flat, but now it has a raised shape, so the amount of food in the bottle is reduced, and it is not easy for consumers to find clues. Is the volume number printed on the packaging.
The Consumer Price Index (CPI) used by Statistics Canada shows that in 2018, the cost of food purchased by consumers from stores was relatively flat, but since 2002, it has risen by nearly 42%.
Chalbova said it was unclear whether Statistics Canada ’s consumer price index included the “reducing inflation†factor. He hoped to hold a meeting with Statistics Bureau to learn more about the impact of packaging changes on Canadian consumers.
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