A couple of anecdotes I’ve accumulated about food prices rising, while product shrinks:
One of my copy-editing colleagues mentioned today that he worked a story by Eagle writer Denise Neil about the return of the McRib at McDonald’s. The story caught his eye to the point that he made a trip to the new Mickey D’s at 53rd and Meridian, where he bought one. Except, this time, the McRib was about two-thirds the size of the last one he ate. The price wasn’t.
Fast forward to Dillons, where one of my favorite Private Selection pre-cooked items is a slab of ribs. Back in the day – nine months ago – you could buy a slab for $9.99. Today, the same slab is $12.99, and is conservatively about 20 percent smaller than the spring of 2008.
Now, we were told last summer this would happen – when gas prices spiraled to $4 a gallon and transportation costs exploded. OK, seems fair. But, those transportation costs have receded. Unfortunately, food prices and food portions have yet to follow suit.
I guess it’s like a voter-approved tax that never sunsets.
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Yes, I’ve noticed that even after gas prices dropped, Dillons prices keep going up every time I visit. On everything. And sandwiches and other fast food items have less fillings. So I’m not eating there anymore.
Just be thankful they didn’t label them diet plans and increase the price even more!
I prefer that portions be reduced than prices increased.
I watch certain items as barometers of recession based on supply and demand. Of course, government always increases taxes regardless of other factors because government keeps adding programs and increasing benefits and perks … so disregard taxes for this exercise.
One supply and demand product is gasoline because it is sold in great quantities all over the country.
But another is Campbell’s soup. Sold in great quantities all over the world. Those large cans of Campbell’s soup, say their chunky Sirloin Burger, 18.8 ounce cans. I think about a year ago they were selling at $1.35 per can. Then went up to $1.50 and then to $1.75/can. I’m talking Dillons and Wal-Mart. A few days ago, I noticed a “roll-back” sign to $1.50/can in the Newton Dillons.
Of course, you have to watch out for a temporary sales price. But 25 cents saving from $1.75 would be a 14% reduction in price.
Campbell’s soup is sold nationwide and probably worldwide.
I think that item is a pretty good indication of where prices should be going … down 14% … don’t know over what time period.
Very common. NPR last summer ran a story on the packing size shrinking for many of the products, from toothpaste, ketchup to even Wrigley’s gum (there new packing is 15 sticks, when it used to be 17 sticks in a pack.)
I remember Wrigleys gum at 5 sticks/pack – for a nickel!
I suspect you can expect both – some companies will lower prices as costs reduce.
Others – kinda like that sunset tax – will decide that they like the bigger margin on the item and ride it as long as they possibly can.
Today I noticed that our favorite bread, Iron Kids Sandwich bread has gone up to $3.19/loaf! Not too long ago, we were buying it for $.99 on sale, then it went to $1.19, then before we knew it, $2.49, and now here it is up to $3.19. I cannot believe it. I guess I’m going to have to start baking my own bread. It certainly is cheaper than buying it, and with a bread machine, no trouble at all.
It’s worth noting that some astute business people have positioned themselves to profit from this situation, both locally and nationally.
Locally, Spangles is breaking sales records weekly as diners trade down in a recession. Same is true for McDonald’s at the national level.
Spangles – almost a daily stop for me. Good value IMO.
Yeah, I agree.
Speaking of the price of bread….
The price of wheat today is about half what it was a year ago. And fuel prices are around half of what they were a year ago. Granted, it takes time for that drop in price to show up. But people shouldnt blame farmers when the food prices go up. They arent getting most of that increase.
Gee, I wonder where it is going, when Cargill is posting record profits?
Maybe some firms were paying attention when the oil companies cashed out last year on the backs of the American driver, eh?