The Grocery Shrink Ray

Prices for food items at the supermarket have been on the rise, and consumers have noticed their shopping budget doesn’t go as far as it used to. But consumers are quickly becoming aware that even as prices increase, they’re getting less for their money. This phenomenon has been termed the “grocery shrink ray” by consumer advocate groups.

In a recent National Public Radio broadcast, the editor of the consumer Web site consumerist.com talked about the shrink ray and the shrinking products it’s leaving in its wake. Food brands including Kellogg cereals (2.4 ounces smaller), Folgers coffee (4 ounces smaller), Tropicana orange juice (7 ounces smaller) and Skippy peanut butter (1.3 ounces smaller) have all felt the effects of the shrink ray. Some manufacturers are trying to hoodwink consumers as they shrink packaging, Ben Popken said on NPR. Kraft Foods, for example, reduced the number of slices in a Swiss cheese package from 11 to 10, then slapped a “Sensible Serving” sticker on the bag, which Popken saw as a cheap trick.

“They’re trying to tap it into the whole obesity crisis, and think that by giving you less for the same amount of money, decreasing your purchasing power, they’re actually helping you out, fitness-wise,” he said.

And the fresh-cut industry is not immune. Fresh-cut fruit bowls from some manufacturers have gotten smaller, and fresh-cut bagged salads have reduced package size to accommodate less product.

Restaurants are facing the shrink ray as well. With beef, chicken and pork prices skyrocketing, chefs are shrinking the size of the center-of-the-plate item and increasing the size of sides. But as produce prices increase, those sides are getting smaller as well. That has long-term consequences for the produce industry because it reduces consumption and moves less product.

Consumers understand tough economic times. Many are tightening their belts and shopping for value in restaurant choices and grocery store selection. Store brand sales have increased while high-end stores like Whole Foods have struggled in recent months. But fresh, convenient produce is here to stay and can do more to improve public health than shrinking the size of a cheese package or a jar of peanut butter.

As consumers look for value, the produce industry needs to educate them about its healthful products and buck the trend of charging more while packing less. Let customers know that a bag of fresh-cut apples, for example, has more nutrients than a bag of candy at the same price, and can be enjoyed by children just as much.
A slow economy could provide opportunities for processors with new markets and customers. The margins may not be as high, but it could mean survival for companies in the fresh-cut industry, from the smallest regional processor to the large multinational corporations.