close
Friday, September 15, 2023

Outcry as companies raise prices, reduce product sizes, content

This week, French supermarket Carrefour warned shoppers of “shrinkflation”, a development where packet contents are getting smaller.

• September 14, 2023
Nestle, PepsiCo and Unilever
Nestle, PepsiCo and Unilever

Public outcry has continued to greet increases in the prices of products and reductions in content in French supermarket Carrefour. 

This came after shoppers woke up to the shocking discovery of the rise in prices of popular products mostly consumed by households. 

This week, French supermarket Carrefour warned shoppers of “shrinkflation”, a development where packet contents are getting smaller. 

Chief among the popular demand are Lipton Ice Tea, Lindt chocolate and Viennetta ice cream, with rising prices. 

Carrefour, France’s second-largest grocery store, has identified 26 products made by food giants, including Nestle, PepsiCo and Unilever, that have shrunk without a price reduction to match.

Stefen Bompais, the director of client communications at Carrefour, has also kicked against the rise in prices of the product as content shrunk. 

For instance, Mr Bompais said Guigoz infant milk formula produced by Nestle had gone from a pack size of 900g to 830g.

He added that the bottle of sugar-free peach-flavoured Lipton Ice Tea, produced by PepsiCo, shrank to 1.25 litres from 1.5 litres. 

He said Viennetta, made by Unilever, has shrunk from 350g to 320g.

“Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy,” he said on Thursday. 

Carrefour revealed that it wanted to pressure the firms making the products to cut prices. 

Retailers and food manufacturers have come under pressure to reduce prices, just as in the UK, as shoppers struggle with sharply rising prices.

However, major producers – Unilever, Pepsico and Nestle have not commented on Carrefour’s move.

But Carrefour had highlighted the products in question with signs on the shelves. 

“This product has seen its volume/weight fall and the effective price charged by the supplier rise,” it pasted on the products with high prices. 

In June, French Finance Minister Bruno Le Maire summoned 75 retailers and consumer groups to a meeting about prices, accusing manufacturers of not toeing the line on inflation.

British consumer groups have also warned of “shrinkflation” affecting the value of common items from cat food to chocolate biscuits.

Although, it is unlikely that UK supermarkets would follow in Carrefour’s footsteps.

Retail expert Ged Futter states that the strategy risks “poisoning” relationships between retailers and food firms.

“This is a very blunt way of trying to compete. To do that with your manufacturers, won’t help. Supermarkets use the same ‘shrinkflation’ tactic with their own-label products,” Mr Futter added.

A spokesperson for Lindt & Sprüngli, another brand identified by Carrefour for shrinking its products, said its prices had gone up on average by about 9.3 per cent in line with rising raw material costs.

“But information about product size was always made clear,” the spokesperson said.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Rights

Forty-eight thousand people from 121 countries petition Nigeria over disability rights

“People with disabilities are being hit hardest by the lack of progress on poverty and inequality,” said Mr Isiyaku. “The promise to leave no one behind is in peril.”

Neda Imasuen

States

Tribunal affirms election of Labour Party senator

The tribunal struck out the petition filed by Valentine Asuen of the APC in Edo South.

Foodstuff

Agriculture

Tomato, onion, yam, bean prices rose in July: NBS

The National Bureau of Statistics (NBS) says prices of food items such as beef, tomatoes, beans, and yams increased in July.

Nigeria Civil Aviation Authority (NCAA) and South African Civil Aviation Authority (SACAA)

Africa

Nigeria, South Africa sign aviation security, safety deal

NCAA and SACAA have signed a deal to achieve unified civil aviation regulation in Africa.

Minister of Niger Delta Affairs, Mr Umana Okon Umana

States

Minister seeks cooperation of Niger Delta governors to develop region

Minister Abubakar Momoh has solicited the cooperation of governors from the Niger Delta to speed up the region’s development.