Heavier packs signal end of shrinkflation

Packs of soaps, snacks, and cookies are gradually turning heavier as companies benefiting from cheaper inputs pass on the benefit without making direct price cuts.

- Suneera Tandon

NEW DELHI: The trend is a reversal of the last couple of years when many packaged consumer goods makers facing soaring costs reduced grammage instead of raising prices in what was called shrinkflation.

Parle Products Pvt. Ltd is offering 20-25% extra grammage on its salty snacks portfolio, a top executive said. “For price cuts, we have no further plans, but yes, we are adding grammage wherever possible. We are also doing promotional offers and offering extra weight where we are getting respite from commodity prices going down— for instance, in cooking oil. In salty snacks, especially, we are offering extra weight and volume," said Krishnarao Buddha, senior category head at Parle Products.

The March quarter data from Hindustan Unilever Ltd (HUL), India’s largest packaged consumer goods company, showed easing prices of crude oil, soda ash, caustic soda, crude palm oil, and tea.