I first noticed this phenomena when my kids were in diapers- P&G would keep the price the same but the package and its contents kept getting smaller. Imagine that this happens more and more in your purchasing life. Isn’t it really the same as getting the same quantity at a higher price? Well you don’t have to imagine it because it’s happening to you in fact.
… [E]ach box has 13% fewer sheets than before.
Consumer products makers call this “desheeting”—reducing the number of sheets of toilet paper or tissues in each package while holding retail prices constant.
… companies, particularly in the food business, have long shrunk packages as an alternative to hiking prices in the face of higher raw-material costs. … [A] regular Snickers bar now weighs 1.86 ounces, down from 2.07 ounces in the past, which Mars says was done to cut calories to 250 per bar. Tropicana Pure Premium orange juice is now sold in 59 ounce bottles, versus 64 ounce cartons prior to 2010. Prices of eucalyptus pulp, a key material for Kimberly-Clark, are up 3% this year, while prices of another kind of virgin pulp known as Northern bleached softwood kraft are up 9%, according to a Barclays report.
courtesy of North Peak Asset Management