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General Mills (GIS +3.3%) raised prices on snack bars some 7% last week, according to a Goldman...

General Mills (GIS +3.3%) raised prices on snack bars some 7% last week, according to a Goldman Sachs research note, as companies attempt to cope with global food inflation. Goldman expects slow increases across the packaged food space throughout 2011, helping lift revenue and keep margins stable. Kellogg (K +1.2%) boosted snack bar prices in December.
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Comments (3)
  • Tack
    , contributor
    Comments (14296) | Send Message
     
    If one wants to find out what the price increases actually are, it is always vital to check whether the contents within the package are the same quantity and/or weight. This is the packaged-goods industry's favorite way to camouflage otherwise outsized price increases.
    20 Jan 2011, 05:05 PM Reply Like
  • enigmaman
    , contributor
    Comments (2688) | Send Message
     
    recent News paper analysis listed packaging size of multiple (dozen) consumable goods (tuna, cereal, coffee, ice cream etc) which did show anywhere from 8-23% less product per package without getting any price reduction, this is an incredible stealth tax on the consumer, companies are no longer eating the loss, they pass it through to consumers, it appears size does matter after all
    20 Jan 2011, 06:27 PM Reply Like
  • ain't no fortunate son
    , contributor
    Comments (1609) | Send Message
     
    This has been going on for years. I first noticed it with ice cream containers in 2002 and started paying close attention as it proliferated. Coffee's been shrunk two or three times. 7 or 8 years ago they sold a 39oz container - now they're down to 28 or so, AND sticker prices have been rising right along as well. I'm amazed people are just waking up to it now... the con's nearly a decade old. Now they're hollowing and indenting the bottoms of glass/plastic jars and bottles of spreads etc so people don't notice the shrinkage. These are American companies intentionally deceiving and screwing American consumers, not Chinese, not Mexican, but American consumer goods companies shafting Americans. Its one thing to announce a price increase, its quite another to sleaze it through and hope the consumer is too busy or distracted with screaming kids to notice. Despicable.

     

    I emailed a company about it once. Their marketing shill replied: "We felt we had to decrease the size because we didn't want to increase the price." What a duplicitous bunch of crap. She knew damn well that if you provide less but charge the same then you're indeed increasing the price because the consumer is getting LESS for their money... but she also knew that 99.999999% of the people wouldn't say a word, they'd just take it without complaint. Shame on them for doing it, shame on us for accepting it.
    21 Jan 2011, 12:15 AM Reply Like
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