Are you spending more on groceries due to stretchflation?
Thanks for asking! The subject of today's episode is the latest questionable practice in retail.
Stretchflation is getting a lot of attention, and for good reason, it's yet another way to squeeze more money out of consumers.
We've already talked about shrinkflation on Do You Really Know?, which is when you see product sizes reduced but prices stay the same.
Since the start of the cost of living crisis, we've also seen cheapflation, which involves cutting out expensive, high -quality ingredients, and greedflation, which saw food companies hike prices far above the rise in their costs, using inflation as justification.
So yeah, it's pretty clear that retailers, and multinationals in particular, have no qualms with using sneaky tactics to maximise profits.
As consumers, it's up to us to be aware of them and consider adjusting our shopping habits accordingly.
Well, it involves a simultaneous increase of a product's weight and price.
That sounds fair enough, right?
But here's the thing.
With stretchflation, the price increase is disproportionately higher than the quantity increase, so the price per kilo or litre is actually more than customers were getting with the previous smaller -sized option.
They might think they're getting a better deal with the bigger size, but many feel ripped off once they realise the reality of the change.
Over in France, journalist Olivier Dauvert brought the trend to light, having noticed many examples of major food companies using stretchflation.
In one case, a snack product saw its weight go up by 10 % from 100g to 110g, but the brand had also raised the price nearly 30%, from €1 to €1 .29.
What's more, the packaging even boasted about the product being in a new format and offering even more crackers.
Talk about misleading.
Is looking at the price per kilo the way to go, then?
That can help, of course, but let's be honest.
Looking at that for every product you buy is a lot of effort.
Usually, we tend to assume that buying in bulk or larger quantity will save us money.
That's what makes stretchflation a more insidious way to deceive consumers, according to Canadian food researcher Sylvain Charlebois, writing in the Saskatchewan Star Phoenix in August 2024.
He suggested that stretchflation is the food industry's reaction to the backlash it faced from consumers once they realised they were being targeted by shrinkflation from 2022 onwards.
Talking to CTV News, also in August 2024, Charlebois called it Shrinkflation 2 .0.
In a way, it's understandable that food prices are rising, because raw material costs are much more expensive than they were even a few years ago.
There are also no regulations against what's being done, at least for now, but consumers certainly aren't pleased with what they see as underhand and deceptive tactics.
Be on the lookout for any examples of stretchflation in stores near you in these coming weeks.
There you have it. Now you know what stretchflation is.
In under three minutes, we answer your questions and help you understand the true meaning behind the trends, concepts and acronyms that are making headlines.
Listen along and you will really know for sure.