French supermarket giant Carrefour is making a bold move in its bid to address the phenomenon of “shrinkflation” by adding price warnings to certain food products. The warnings aim to exert pressure on manufacturers to reduce their costs and maintain transparency in the face of product downsizing.
Currently, Carrefour has affixed these warnings to 26 products that have experienced reductions in size while costing consumers more, even as raw material prices have stabilized. All of these products bear the same label: “This product has seen its volume or weight fall and the effective price by the supplier rise.”
One example cited is a bottle of sugar-free peach-flavored Lipton Ice Tea, produced by PepsiCo, which shrank from 1.5 liters to 1.25 liters. Simultaneously, there was a 40% increase in the price per liter, exemplifying the concept of “shrinkflation.”
Stefen Bompais, Carrefour’s director of client communications, stated, “Obviously, the aim in stigmatizing these products is to be able to tell manufacturers to rethink their pricing policy.” This move is strategically timed ahead of impending contract negotiations with major brands, set to commence soon and conclude by October 15, as reported by Reuters.
Carrefour’s spokesperson revealed that the company has diligently endeavored to offset increased costs through enhanced efficiency measures. The supermarket chain indicated that it only passed on costs it could not absorb itself in the form of price increases to its customers.
As Carrefour takes a stand against “shrinkflation,” it signals a shift in the relationship between retailers and manufacturers. The supermarket chain’s actions aim to maintain transparency and fairness in pricing, ultimately benefiting consumers by encouraging manufacturers to align product sizes and prices more equitably.
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