Beloved Australian ice cream brand announces product ‘shrinkflation’ amidst cost of living crisis - Here’s what you need to know
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As the current cost of living continues to increase, it’s no surprise that more and more households and businesses are feeling the pinch.
In order to help cope with the financial pressures that come with rising supplies and production costs, some companies have resorted to reducing the size and weight of their products to help offset them - a method often referred to as 'shrinkflation' or 'size-reduction'.
And now, our beloved Maxibon ice creams have become the latest item to join the club of scaling-down sizes.
Unlike other affected products, Maxibon's parent company, Peters, has taken a unique, transparent approach to forewarn customers of the eventual size reduction expected to occur this month.
In a post on its social media channels, the company said: 'It's not the news you'll want to cop, but we had to let you know first. Tough times mean tough changes.'
The company confirmed that the size reduction ‘won't affect the cost’ (other than us having to pay the same price for less) of the delectable ice cream treats.
‘From this month, you'll notice the changes, but our Maxibons will have the same taste you know and love,’ the statement continued.
‘We're sure there are a few thoughts going through your head, so we thought we'd beat you to it.’
Unsurprisingly, reactions to the news have been overwhelmingly adverse, with customers expressing their disappointment at the idea of getting less for the same cost.
One user wrote: ‘I find it insulting that you are downgrading a national treasure in the Maxibon while keeping the price the same.’
‘Yes, sales will drop. Last time I'll be buying any Maxibons,’ another said.
‘I don't buy or support any company that downsizes products and keeps the same price tag.’
Some customers urged the company to also drop the cost of the treat.
One comment read: ‘Put the price down then!’
‘I suppose the price should go down a “touch” too, then?’ Another questioned.
Others suggested that the brand change its name if it offers a ‘different’ product.
One person said: ‘You got to change the name MINIBON now.’
Meanwhile, other consumers praised the company for being transparent about the changes in the product.
‘Kudos for not trying to sneak it past consumers without anyone noticing. Understandable given CPI,’ one user praised.
Changes in the prices of goods and services, such as food, can result from various factors.
One of the most common causes is the increase in production costs. As inputs for food production, such as labour, land, and equipment costs, rise, so does the cost of producing food, which can cause consumer prices to rise.
In the case of Maxibon's decision to shrink the size of their ice cream, the company appears to be attempting to mitigate this rising cost of production by reducing the size while keeping the price the same.
The move toward shrinkflation is a common way for companies to make up for rising costs. With companies across the globe cutting the sizes of various products, it can be an effective way to recoup losses while avoiding the negative press associated with raising prices.
This is not the first time a food product has been the target of shrinkflation, and it likely won't be the last.
As production costs continue to rise, more companies may consider following in Maxibon's footsteps to avoid raising prices and potentially losing customers.
Members, we’d love to know what you think about Maxibon’s decision. Do you think it’s necessary, or should prices also decrease to at least partly offset the size reduction? Have you had any experiences with other food products that have undergone shrinkflation recently? Let us know in the comments below.
In order to help cope with the financial pressures that come with rising supplies and production costs, some companies have resorted to reducing the size and weight of their products to help offset them - a method often referred to as 'shrinkflation' or 'size-reduction'.
And now, our beloved Maxibon ice creams have become the latest item to join the club of scaling-down sizes.
Unlike other affected products, Maxibon's parent company, Peters, has taken a unique, transparent approach to forewarn customers of the eventual size reduction expected to occur this month.
In a post on its social media channels, the company said: 'It's not the news you'll want to cop, but we had to let you know first. Tough times mean tough changes.'
The company confirmed that the size reduction ‘won't affect the cost’ (other than us having to pay the same price for less) of the delectable ice cream treats.
Peters announced its plans to ‘shrinkflate’ Maxibon, informing customers that the size reduction of the product will be implemented later this month. Credit: Facebook/Maxibon.
‘From this month, you'll notice the changes, but our Maxibons will have the same taste you know and love,’ the statement continued.
‘We're sure there are a few thoughts going through your head, so we thought we'd beat you to it.’
Unsurprisingly, reactions to the news have been overwhelmingly adverse, with customers expressing their disappointment at the idea of getting less for the same cost.
One user wrote: ‘I find it insulting that you are downgrading a national treasure in the Maxibon while keeping the price the same.’
‘Yes, sales will drop. Last time I'll be buying any Maxibons,’ another said.
‘I don't buy or support any company that downsizes products and keeps the same price tag.’
Maxibon took to social media to share the important announcement. Credit: Maxibon/Facebook.
Some customers urged the company to also drop the cost of the treat.
One comment read: ‘Put the price down then!’
‘I suppose the price should go down a “touch” too, then?’ Another questioned.
Others suggested that the brand change its name if it offers a ‘different’ product.
One person said: ‘You got to change the name MINIBON now.’
Meanwhile, other consumers praised the company for being transparent about the changes in the product.
‘Kudos for not trying to sneak it past consumers without anyone noticing. Understandable given CPI,’ one user praised.
Changes in the prices of goods and services, such as food, can result from various factors.
One of the most common causes is the increase in production costs. As inputs for food production, such as labour, land, and equipment costs, rise, so does the cost of producing food, which can cause consumer prices to rise.
In the case of Maxibon's decision to shrink the size of their ice cream, the company appears to be attempting to mitigate this rising cost of production by reducing the size while keeping the price the same.
The move toward shrinkflation is a common way for companies to make up for rising costs. With companies across the globe cutting the sizes of various products, it can be an effective way to recoup losses while avoiding the negative press associated with raising prices.
This is not the first time a food product has been the target of shrinkflation, and it likely won't be the last.
As production costs continue to rise, more companies may consider following in Maxibon's footsteps to avoid raising prices and potentially losing customers.
Members, we’d love to know what you think about Maxibon’s decision. Do you think it’s necessary, or should prices also decrease to at least partly offset the size reduction? Have you had any experiences with other food products that have undergone shrinkflation recently? Let us know in the comments below.
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