By Christopher Harper
Joe Biden complained recently about “shrinkflation,” when consumer products become smaller in quantity, size, or weight while their prices stay the same or increase.
“Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won’t notice,” said Biden, who called for the companies to stop the practice.
Here’s a classic example of why it happens at a local eatery near my home. When Ingrid Callenberger, the co-owner of The Tria Prima in Williamsport, Pennsylvania, went to place her regular sugar order in mid-February, she was startled by a near-double price increase.
“I knew it was going to happen, but then it happened, and I wasn’t prepared,” Callenberger said. “I felt a lot of panic because the train keeps going. We can’t stop to figure this out.”
Small businesses like The Tria Prima, which serves tea and sweets, have limited business choices.
“Because we’re so small, we can’t afford to buy at volume. Sometimes I don’t order for three months,” she said. Buying larger portions would reduce costs, but the goods could spoil before use.
Callenberger said she believes in supporting small producers, so she buys bulk sugar from smaller-scale companies, not industry giants like Domino Foods. Turning toward alternative sugars like maple syrup and honey is an appealing but pricey move, and using less sugar would limit the variety of products the business can offer.
When goods and shipping costs increase, retail prices must rise, Callenberger said. “When we have to charge more, we’ll charge more.” To support the consumer, The Tria Prima may maintain prices but switch to smaller portions or shrinkflation.
Callenberger said she fears unpredictable market changes will force small businesses like hers to shutter. “We’re fighting something bigger than us to keep going.”
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