Wednesday, July 29, 2009

Packaging Tricks

No, your eyes aren’t playing tricks on you. Companies who supply food to the grocery stores have long used the trick of increasing the size of packages but putting the same amount, or less, in the package, making it look like you’re getting more for your money. Last year, food packages shrank as food makers struggled to maintain their profits. But the weakened economy has caused a slump in demand for ingredients like corn and oil, pushing those prices back down. With lower cost ingredients, some brands like Frito-Lay are now shifting back to bigger packages, without raising prices.

Think of your food packages as an economic barometer. Times are tough, so costs are low and packages are bigger. When times are good, costs are high and packages, to compensate, get smaller. Tough times also mean consumers have less money to spend, so they want those bigger packages. Experts say this is a promotional trick that helps branded food companies steer shoppers back to their products and away from less expensive, store-brand alternatives.

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