Additional Coverage:
- Sen. Elizabeth Warren and Rep. Madeleine Dean demand food and beverage CEOs put a stop to ‘shrinkflation’ (nbcnews.com)
Shrinkflation: Lawmakers Accuse Food Giants of Price Gouging
Democratic lawmakers Elizabeth Warren and Madeleine Dean have accused General Mills, Coca-Cola, and PepsiCo of engaging in “shrinkflation” – reducing product sizes while maintaining or increasing prices.
The lawmakers claim that these companies have “dodged taxes” by lobbying for Republican-led corporate tax breaks in 2017. They allege that corporations have used these tax cuts to pad their profits rather than pass savings onto consumers.
Examples of shrinkflation cited include General Mills reducing the size of Cocoa Puffs boxes and PepsiCo replacing its 32-ounce Gatorade bottle with a 28-ounce one.
Industry Defends Practices
Spokespeople for the accused companies have not yet responded to requests for comment. However, PepsiCo has denied changing bottle sizes for profit and Coca-Cola has explained its smaller bottles as a cost-saving measure.
The Consumer Brands Association, which includes the companies in question, has defended industry practices, citing a report that claims markups have not been unusual during the current economic recovery.
Calls for Accountability
Warren and Dean have requested information from the companies, including price data, tax payments, and executive bonuses. They aim to expose the “wrongful burden” placed on consumers and ensure that corporations pay their fair share of taxes.
Consumers Notice, Companies Respond
Consumers have taken notice of shrinkflation, with websites like MousePrint.org highlighting downsized products. President Joe Biden has also called out shrinkflation as a “rip-off” and urged Congress to regulate it.
Even Cookie Monster has expressed dismay over shrinking cookies. While manufacturers may see downsizing as a way to increase profits, consumers are becoming increasingly frustrated with paying more for less.