Have you ever wondered what the difference between Coca-Cola and Coca-Cola Zero is?
Well, you may say price and taste relating to sugar; but really, come on!
Shrinkflation is a word coined from shrink and inflation.
In simple terms, it implies a reduction in the quality or quantity of a product with the product price remaining the same.
In the case of Nigeria, product price increases without justifiable reasons From manufacturers. This is common among FMCG firms even with regulators’ connivance. Thus it is the act of giving customers less value for their money.
Why This Is Done
When the cost of production rises, companies often put the burden on customers to cut back operation expenses. One of their most effective methods is the reduction of products’ quality and quantity while the price remains unchanged.
Also, this is even more convenient for them as their actions are mostly undetectable.
For instance, consider the prices ranging from bottle size, with no much difference in price range but the evident difference in the content of the bottle.
Companies that engage in shrinkflation
Several brands have at one time or the other reduce the size of their products in order to accrue more profits in Nigeria. These companies don’t just reduce the size of their products, they also increase the prices.
Biscuits And Confectionery Firms
In the early part of this century, Coaster Biscuit put seven pieces in a pack but as years went by the number began to drop even as each stick became leaner until the company felt three would be enough for its customers. This move was later accompanied by a price-hike. A Coaster pack with seven sticks was initially sold at N5, but today, a pack with three biscuits goes for N10.
Burger And Sardine Companies
Apart from biscuits companies, the manufacturer of Burger peanut is successfully selling breeze to consumers.
Customers too have termed it ‘airbag’ due to the excessive air inside the pack. Also on the list is Titus Sardine, which initially put four pieces of fish in a tin and sold it for N200. The product now juggles between three and two pieces for N250.
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