Shrinkflation in Spain

According to last IRI Infoscan survey in Spain (in their last 12 months rolling to June 22), the average price increase for food categories was 6.4 % higher than the same period in the previous year.

One of the levers used by food companies not to appear to increase prices is shrinkflation which in Spain is already affecting to circa 10% of the products on offer according to the OCU (the Spanish Consumers and Users Organization, the most relevant private association in defence of consumer rights).

This practice – which is rejected by 62% of consumers (Gartner survey in June 22) – may well affect the reputation of companies abusing it especially in a context of serious activist initiatives such as the one carried out by OCU in Spain. Looking more widely, Bloomberg has recently titled one article “Shrinkflation is Sparking Fury (in Germany).”

Products from well known brands in the main categories of soft drinks ( a 2l bottle PET reduced to 1.75l and sold at same price), dairy (5gr. less in the same yoghurt pot at the same price), frozen fish, processed meats (1 slice less in the same pack at the same price), pasta, etc have been taken to the regulatory body CNMC ( the official safeguard of anti competitive practices) by OCU on the basis of lack of information and possible anticompetitive behaviour.

OCU has also appealed to the Spanish Consumption Ministry to issue clear guidelines in terms of information on quantities and related prices where the price per kilo or per litre regulations are not clearly complied with or even displayed at all on shelf.