President Biden Calls on Snack Companies to End Shrinkflation
U.S. President Joe Biden has called on snack companies to put an end to shrinkflation, a practice in which businesses reduce the size of their products while keeping prices the same. In a video posted on X, formerly known as Twitter, Biden criticized companies for trying to “pull a fast one” and stated that the American public is tired of being taken advantage of. While the President did not offer any specific solutions or policies, he mentioned several brands, including Gatorade, Doritos, Breyers, and Tostitos, which were shown in the video.
Consumer Brands Association Responds to Biden’s Comments
In response to Biden’s comments, David Chavern, president and CEO of the Consumer Brands Association, stated that the President’s focus on shrinkflation is an attempt to divert attention away from the lingering inflation during his administration. Chavern expressed the association’s willingness to work with Biden on “real solutions that benefit consumers.” PepsiCo, the parent company of Gatorade, Doritos, and Tostitos, as well as Unilever, the maker of Breyers ice cream, were not immediately available for comment. Reuters also could not reach Mondelez, the maker of Oreos, and Campbell Soup, the owner of Goldfish crackers.
Impact of Shrinkflation Highlighted in Senate Report
The impact of shrinkflation was highlighted in a report released by Senator Bob Casey in December. The report showed that smaller product sizes have contributed to increased prices for household paper products and snacks such as Oreos and Doritos. In fact, the report indicated that the price of snacks had gone up 26.4% over the past few years, with shrinking portions making up 9.8% of the increase.
Inflation Remains a Major Concern for Americans
While inflation appears to be slowing down, it remains a major concern for Americans, according to a Reuters/Ipsos poll. The economy is Americans’ top concern, with 22% of respondents pointing to it as their biggest worry. This is due to the challenges that individuals have faced from inflation and other consequences of the COVID-19 pandemic.
Biden’s Push for Lower Prices and Consumer Protection
Since taking office, President Biden has been advocating for lower supermarket prices and has been urging drug makers to reduce insulin costs, hotel chains to lower fees, and the meat-packing industry to diversify. These efforts come as a response to the skyrocketing beef prices after the pandemic.
Overall, Biden’s call for snack companies to stop shrinkflation aligns with his push for lower prices and consumer protection. While the President did not propose specific solutions in his video, his message highlights the need for businesses to do the right thing and put an end to this practice that he considers a rip-off.
Analyst comment
Positive news: President Biden’s call to end shrinkflation demonstrates his commitment to lower prices and consumer protection. It aligns with his efforts to address inflation concerns and protect Americans’ wallets. Market impact: Snack companies may face pressure to stop shrinkflation, leading to potential changes in product sizes and pricing to meet consumer demands.
