The corporate trend in the economy for the past few years has been shrinkflation, a process whereby brands charge the same price or more for a smaller quantity. Some economists say this is the prelude to rampant price inflation.
We have written about this before, including Cadbury removing to squares from its snack but charging the same and Shredded Wheats cutting back its box by 55 grams but charging the same.
The latest corporate brand to incorporate shrinkflation into its business model is Coca-Cola. It’s aggressively marketing its 7.5-ounce mini-cans as a way to celebrate the special moments in life. Analysts purport that it’s part Coca-Cola embracing the shifting habits of consumers, who happen to be drinking less soda.
At its peak in 1998, United States consumers consumed nearly 600 cans a year. Today, that number has dipped to around 450 cans. Coca-Cola and other soda companies have reported diminishing sales because customers don’t want to drink pop anymore since it is horrific for one’s health.
It may not be a problem that Coca-Cola is offering this product, but charging more for less may be rather unscrupulous. Here is the price comparison between a 12-ounce can of Coke and a 7.5-ounce: “a regular 12-ounce can of Coke on average sell for 31 cents. By comparison, a 7.5-ounce mini-can sells for 40 cents.” (Courtesy of the Associated Press).
Financial experts argue that brands do this because customers are wearier to price hikes than a contraction in the size.
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