News Update


Carrefour in France posts’shrinkflation’ warning flags.

Among the products mentioned and shamed are Lipton Ice Tea, Lindt chocolate, and Viennetta ice cream.

Customers are informed whether bottles are smaller or pack contents are lighter.

Carrefour stated that it wants to put pressure on the manufacturers of the products to keep prices low.

“Obviously, the goal of stigmatizing these products is to be able to tell manufacturers to reconsider their pricing policy,” said Stefen Bompais, Carrefour’s director of client communications.

Carrefour has found 26 goods from food majors such as Nestle, PepsiCo, and Unilever that have shrunk without a price drop.

Carrefour reported that the pack size of Nestle’s Guigoz newborn milk formula had been reduced from 900g to 830g.

PepsiCo’s sugar-free peach-flavored Lipton Ice Tea bottle has shrunk from 1.5 litres to 1.25 litres, according to the grocer.

Unilever’s Viennetta has decreased from 350g to 320g.

Carrefour, France’s second largest retailer, is emphasizing the products in question with shelf placards that read, “This product has seen its volume/weight fall and the effective price charged by the supplier rise.”

Unilever, Pepsico, and Nestle have not responded to Carrefour’s decision.

As buyers struggle with dramatically rising prices, French merchants and food manufacturers, like those in the UK, have been under pressure to cut prices.

In June, French Finance Minister Bruno Le Maire called a conference of 75 shops and consumer groups to discuss prices, accusing manufacturers of not adhering to inflation targets.

Consumer groups in the United Kingdom have also warned of “shrinkflation,” which has reduced the value of everyday things ranging from cat food to chocolate biscuits.

According to retail analyst Ged Futter, UK supermarkets are unlikely to follow Carrefour’s lead because the policy risks “poisoning” ties between retailers and food companies.

“This is a very blunt way of trying to compete,” he remarked. “Doing that with your manufacturers will not help.”

He said that supermarkets apply the similar “shrinkflation” strategy with their own-label items, attempting to maintain a specific price point, such as ¬£1, by adding cheaper ingredients or making servings smaller to manage rising expenses.

Calling out brands for doing the same would be “people in glass houses throwing stones,” he argued, risking allegations of hypocrisy.

Lindt & Spr√ľngli, another company recognized by Carrefour for reducing its items, stated its prices had risen by 9.3% on average due to rising raw material costs.

However, the representative stated that information concerning product size was always made explicit.

“We always follow labeling laws and regulations that require objective information about how much product is in the package, such as a net weight statement, a serving size statement, and a servings-per-container statement.”

“Consumers can use this information to make accurate and informed purchasing decisions about the amount of product they are buying.”


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