That Shrinking Feeling

Many consumers may have noticed that popular food and beverage containers are shrinking along with their wallets, but that prices, alas, are not. Tropicana, for example, recently redesigned its large orange juice container, giving it an easy-pour lid—and the capacity to hold only 89 ounces, rather than its old 96 ounces. The price has stayed constant. In an email, Tropicana spokeswoman, Karen May, explained that the smaller size was needed as "the optimum configuration" for the new lid, adding, "Our consumer research indicates that, despite the smaller size, there was no change in the perceived value of the product because of the benefits of the added features."

But whether or not shoppers realize or care that they're getting less, examples of shrinking products are scattered throughout the grocery store, proving that it's harder than ever to shop on a budget. To find out how to do it, Karen Springen talked with Ben Popken, editor of consumer-affairs blog Consumerist.com. Excerpts:

NEWSWEEK: How many food companies are shrinking the size of their packaging so they can keep the price the same?
Ben Popken: According to industry analysts, up to 30 percent of all packaged goods, not just food, have had some sort of size reduction. When the size goes down, the price stays the same. Editor's note: A recent USA Today story reported that an executive for the Nielsen Co. said up to 30 percent of packaged goods have lost content, but that some prices have also been correspondingly reduced, though some haven't.

Tropicana reduced the size, kept the price the same, but they also changed the package design. If you look at the before and after photos, the old one was a squat, more station-wagon [container]. The new one has more curves to it, as well as an easy-pour lid. They drew people's attention to the added-value feature, as well as adding subtle curves to distract the eye from the fact that the product is actually smaller. It would be a lot easier to compare oranges to oranges if the product were in the same format. The smaller container has got the "easy pour" lid and the curves, but the height of the thing is the same. [People think,] "Wow, look, advanced technology."

Do you feel bad for the companies because their costs are going up too?
I don't feel bad for them. It's a business transaction. Even if they have a talking chicken, I don't project empathy onto the company. I do understand why they have to pass on the price increase in some way. There's increasing manufacturing prices across the board, with oil, which goes into all the plastic packaging, as well as transportation prices skyrocketing, as well as the increasing prices of milk and grain, which go into the production of other foodstuff. It's an economic reality that I don't think anyone is naïve about. Times are tough. The problem is that this is tantamount to a secret inflation. It's a hidden price increase. There's no item that says, "Guess what, times are tough for you—same thing for us. Here's a price increase. We're shrinking the package." The only announcement about it is in the small print: The net weight is different, or the amount of portions are fewer. When you add on the other distracting measures, which are no coincidence, like drawing attention to a new and improved feature, it's pretty obvious what they're trying to do, to not cause a consumer backlash. These are business considerations. By the same token, we as consumers have the same right to get pissed off about it. Our purchasing power is decreased. Now, more than ever, it's time to follow along with what your grandma always told you about how you should go shopping.

Like carefully looking at price per ounce?
Look at unit costs, instead of just the price tag. I've seen my guy friends when they go shopping just scoop up whatever looks good off the shelf. That's what [manufacturers] are banking on—that people aren't being careful consumers.

Is there a silver lining—that we may finally end up eating less because we can't afford to consume as much as in the past?
Right. In some ways, I'm sort of glad we're going through this downturn. We were in a glut before. We were just pigs at the trough. People say, "Things are getting bad, people are having to buy smaller houses and buy smaller cars." This is the thing we need to stop us. We're gorging on the food, we're gorging on the houses, we're gorging on loans, we're gorging on oil. Maybe only by having high prices and less value will that get us to wake up. There's been overconsumption across the board. The American economy is going on a diet. So should we.

The U.S. Department of Agriculture's Economic Research Service recommends that households purchase more discounted products, favor private-label products over brand-name ones, pursue volume discounts and settle for "less-expensive products within a product class." Do you agree?
Yes. People should buy based on the best value within the product class. There's a lot of sustainable farming. People join together and buy direct from farmers. You cut out the middleman. That's one way to beat the whole crunch. Farmers' markets, too, are a good way to save and get good, healthy food.

The USDA's "My Pyramid" tells Americans to eat at least 3 ounces of whole grains a day, to consume more orange and dark-green veggies, to focus on fruits, to consume calcium-rich foods, to choose low-fat or lean meats and poultry, and to vary choices with more fish, beans, peas, nuts and seeds. No mention of cheap stuff like white bread. How can cash-strapped Americans try to live by the food pyramid?
I don't think you could say that any government-sponsored diet is the one answer for how everyone should eat. There's a lot of different ways [to eat] and kinds of foods out there that are not necessarily on the government food pyramid. Talk to your doctor about building a diet that's right for you based on your body and your budget needs.