‘SUPER-SHRINKFLATION’ HITS UK SHOPPERS AS FOOD GIANTS CUT SIZES BUT RAISE PRICES

Mon 07 August 2023:

Shoppers already hit by “shrinkflation” are now having to pay higher prices for more of the same products, an investigation by The Telegraph found.

Brands and supermarkets are both responsible for the “super-shrinkflation”, as food price rises hit 19.2 percent in March compared with a year before despite portion sizes also being cut.

Items on sale at retailers including Tesco, Sainsbury’s, Asda and Morrisons are among those affected with, in some cases, the cost being twice the price per unit compared with last year.

Bags of Cheetos crisps when bought in a multi-pack are now 25p per pack, rather than 12.5p. They used to be sold in packs of eight for £1, but now come in sixes for £1.50.

It came after economists warned Britain’s era of cheap food was at an end, with the Bank of England saying grocery price inflation will stay in double digits until the end of the year.

Own-brand products will show the fastest increases, experts said, with food prices still expected to rise at an annual pace of “around 10pc or slightly lower” by the end of 2023.

Helen Morrissey, a retail expert from Hargreaves Lansdown, said, “At a time when we are working hard to make sure every penny goes as far as possible it is shocking to see that in many cases we are paying more to receive less – and at times much less – than we did before.”

In recent months, Hellman’s large 800g mayonnaise has dropped to 600g but now costs £3.75 instead of £3.29. Jars are 25 percent smaller and 14 percent dearer.

Penguin chocolate bars were sold in packs of eight for £1.25. Now they are sold in packs of seven for £1.50, meaning that each bar costs 5.8p more.

A McVitie’s digestive biscuit is now up 1.5p to 7.5p, after the number in packs went from 27 to 24, while the price went up from £1.60 to £1.80.

Even ready meals are affected. A Tesco chicken jalfrezi at 400g is 50g smaller than a year ago, but costs £3 rather than £2.75. It works out at 23 per cent more per mouthful.

Pringles cost a fifth more per crisp as a result of small packs and a price rise.

One particularly striking example is that of Magnum ice creams, from Unilever. Early last year, individual lollies in a pack of four went from 110ml to 100ml, while the price stayed the same at £3. More recently, the number in each pack has gone down to three and the price at Tesco is up from £3 to £3.25.

It means each ice cream has gone up 33p to £1.08, while also being several bites smaller.

The total per unit rise between early last year and now is effectively 59 percent.

Sue Davies, head of food policy at Which?, said, “Pack sizes on popular products continue to shrink, but the same can’t be said for their prices – leaving shoppers with a double whammy of paying more for less when they’re doing the weekly shop.”

“Supermarkets and manufacturers must be more upfront about the cost of their products and ensure unit pricing is prominent, legible and consistent in-store and online. That way, customers can easily compare prices across different brands and sizes of packaging to ensure they are getting good value,” she added.

Supermarkets insist that the rises are not misleading since prices and amounts are stated on shelf labels.

But Morrissey said, “Shoppers shouldn’t have to scrutinise every single label in the supermarket to see if things have actually got smaller.”

“People don’t have the time and it’s a poor way to repay a customer’s loyalty to your brand,” she added.

Pladis, which makes McVitie’s biscuits and Penguins, said, “As with every company in the sector we have seen our input costs increase with inflationary pressures across our supply chain and this trend has continued throughout 2023.”

Nescafe-owner Nestlé said, “Retail pricing is at the sole discretion of individual retailers.”

Weetabix said, “We don’t control or influence the selling prices of our breakfast cereals, as these are set by individual retailers. We do monitor retail prices and our research shows some outlets might charge more or less than others, depending on their individual circumstances and current promotions.”

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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