Taller box, less cereal? Calls for more transparency when companies shrink your groceries

Ellyn Newallof Edmonton felt duped after a recent grocery shop.

She had purchased two boxes of family-sized Honeycomb cereal for the same price.But when she unpacked her shopping bag, she noticed one box was slightly taller and slimmer than the other.

Turns outthe shorter box is older packaging, which is being phased out. The taller box is new packaging but taller doesn't mean more product.

In fact, when Newall took a closer look, she discovered the newbox has 70 grams less cereal a reduction of almost12per cent.

"The first thing you think is, like:'How could they do that to us?' You feel upset. You feel deceived," she said.

It's called shrinkflation and occurswhen food producersshrink itemsbut not the price or packaging, making it hard to detect. It has been going on for years.

But as Canadians struggle with rising groceryprices, there are growing calls for more transparency when companies downsize products.

WATCH | Some food packages are shrinking:

Transparency needed on shrinkflation, consumer advocates say

11 months ago

Duration 2:34

Consumers and advocates are calling for more transparency around the practice of shrinking packaging rather than increasing prices, known as 'shrinkflation.' Other countries make companies display weight changes on product labels.

"Everything seems to be more expensive now. And by simply reducing the size of their products, people maybe feel like they're being tricked a little bit," said Sylvie De Bellefeuille, a lawyer with the consumer advocacy groupOption Consommateurs.

U.S.-based Post Consumer Brands, makers of Honeycomb cereal, did not reply to requests for comment.

The company hasn't broken any rules. Manufacturers must displaytheweight or volume on packaged food labels, but they're notobligatedto alert shoppers whenthey shrink an item.

"If I had noticed this in the store, I absolutely would not have bought this box," said Newall, referring to the new boxwith less cereal.

"I would honestly like to say to the federal government to please, please find some way to regulate this."

How widespread is it?

Because shrinkflation can be hard to identify, it's difficult to know precisely how widespread it isandif it's on the rise.

CBC News combed grocery stores over the past couple of weeks andfound several cases of shrinkflation.

For example,Mondelz'sWheat Thins crackers hasshrunk 10 per cent to 180 grams, Kraft Heinz'sOriginal Kraft Dinner has been reduced 11 per centto 200 grams, and General Mills's Betty Crocker SuperMoist Cake Mix has shrunk 13 per cent to 375 grams.

Despite the reductions, the price and packagingremained the same for each product.

General Mills did not reply to requests for comment.

Kraft Heinz and Mondelz said they reduced their products to offset higher production costs.

The industry groupFood, Health and Consumer Products of Canada (FHCP) echoes that argument.

"Food manufacturers are challenged by increasing costs," FHCP spokesperson Anthony Fuchssaid in an email. "Rather than simply pass these costs directly on to consumers, they consider alternatives that can include adapting the size of[the product]."

But consumer advocate De Bellefeuilleargues shoppers are more likely to notice a price hike than a subtle weight change.

"With more transparency, at least we would know that we have less for the same [price], so that we can make better informed decisions," she said.

Ben and Jerry's acknowledges shrinkage

To help keep Canadians informed, Toronto-based brand strategist Neal Chauhan makes TikTok videos exposing shrinkflation.

Theyhave garnered millions of views and heatedviewer comments.

"They're furious. Not at me, but at the fact that this is actually something that's happening," he said.

When CBC News met with Chauhan, he was making a TikTok video about Ben and Jerry's ice cream, which recently shrunk by 5.4 per cent to 473 millilitres.

He credits the brand for being upfront about it.On its website, Ben and Jerry's states it downsized itsice cream to offset higher supply costs.

"They're one of the only brands who have ever brought attention to this,"said Chauhan."I think it's a great first step."

Chauhan would like the federal government to mandate that food producersalert shoppers when they shrink a product.

Brazil already requires that companies note recent weight changes on a product's label.

Last month, France pledged to take similar action. Instead of waiting for legislation, major French grocer Carrefour has started posting signs in stores, exposing downsized products.

In 2013, Option Consommateurssubmitted a report to the federal government advising it to regulate shrinkflation. Recommendations included requiring companiesalert customers on food product labels, as is done in Brazil.

But Fuchs, with industry group FHCP,warns new labelling requirements could have the"unintended impact" ofincreasing companies'costs.

What's the federal government doing about it?

Facing pressure to combat high grocery prices, the federal government says it's creating a grocery task force that will, among other responsibilities, investigate shrinkflation.

Justin Simard,a spokesperson for Innovation, Science and Economic Development Canada, told CBC News in an email that Ottawa has identifiedshrinkflationas a practicethat hurts consumers.

However, he had no details yet of any type of action plan.

As for Newall, once shediscovered the new boxes of Honeycomb containedless cereal, she took action bybuyingseveral older boxes before they disappeared.

"I know that once that sells out, I'm no longer going to get [the same] value for my money."

Tax implications

Canadians should also be aware that when some food products shrink below a certain amount, they must pay sales tax.

Although manygrocery items are tax-exempt, shoppers must pay tax on snack foodssuch as muffins, pastries, cereal bars and cookies in packages of less than sixandcontainers of ice creamunder500 millilitres.

Tubs ofBen and Jerry's and Hagen-Dazs ice cream each recently shrunk from 500 millilitresto 473 millilitres and 450 millilitres respectively. That means Canadians now not only get less per tub, but they're also hit with sales tax.

Chauhan discovered this when he purchased two tubs of Ben and Jerry'sto make his TikTok video, and was charged 13 per cent harmonized sales tax.

"We're getting taxed on this because it's technically a single serving. Whether the average consumer is OK with that is a different story," he said.

Despite ever-shrinking products, the Canada Revenue Agency told CBC News it's not reconsidering its rules for taxable snack foods.

WATCH |How shrinkflation affects shoppers:

How shrinkflation affects Canadian consumers

2 years ago

Duration 2:06

To deal with the impact of rising inflation, companies are reducing package sizes while charging the same prices in whats known as shrinkflation. Experts suggest consumers can avoid shrinkflation by paying attention to the price per unit rather than the total price.