Monday, July 27, 2009

Food inflation?

We've been complaining about the "shrinkage" at the grocery store - you know, the gallon of ice cream that's now three quarts or the pound of coffee that's now 12 ounces.
Well, hold on to your seat ... some packages are actually getting larger.
From the Associated Press:

Last year, food packages shrank as food makers, dealing with record high ingredient costs, struggled to maintain their profits. But the weakened economy has caused a slump in demand for ingredients like corn and oil, pushing those prices back down. With lower ingredient costs — and higher consumer demand for more value — some brands are shifting back to bigger packages, without raising prices.
So far, the most evident size boosting is in the chip aisle, where Frito-Lay dominates. The company has boosted some package sizes for brands like Doritos, Cheetos, Tostitos and Fritos by 20 percent, reversing cuts made to bag sizes last year.

But don't expect it to last .. experts predict that commodity prices will go up as the economy improves. So that bag of chips will likely get smaller again.

1 comment:

Jackie said...

Hmmm, of course the stuff that isn't good for you would get bigger. Means I will have to watch it when I get the munchies.

God bless.