French supermarket chain Carrefour has adopted an unconventional approach by labeling products that have recently undergone size reductions accompanied by price hikes. This move, both in physical stores and on its online platform, is intended to exert pressure on suppliers who have raised prices for the chain, despite a recent easing of raw material prices.
The labeled products include well-known brands like Lipton Iced Tea, Pepsi, Lindt chocolates, and baby milk powder. Carrefour has marked 26 products with labels stating, “This product has seen its volume or weight fall and the effective price by the supplier rise,” as reported by Reuters.
Stefen Bompais, a director of client communications at Carrefour, emphasized the intention behind this labeling effort. He stated, “Obviously, the aim in stigmatizing these products is to be able to tell manufacturers to rethink their pricing policy.”
The move by Carrefour coincides with impending brand negotiations with specific retailers, providing a platform for discussions regarding pricing strategies.
Shrinkflation, the reduction in product size without a corresponding decrease in price, tends to become more prevalent in high-inflation environments. Manufacturers often implement these changes discreetly, making it challenging for consumers to notice alterations in the products they purchase. Edgar Dworsky, founder of Mouse Print, a platform tracking instances of shrinkflation in groceries, highlighted this issue earlier this year.