Consumers are not so dumb that they fail to see when they are getting less product for their money. It’s called “shrinkflation.” The Merriam-Webster Dictionary notes, “Shrinkflation is the practice of reducing a product’s amount or volume per unit while continuing to offer it at the same price.” In case you missed it, Sesame Street’s beloved Cookie Monster weighed in on this issue. On X (formerly Twitter), Cookie Monster wrote, “Me hate shrinkflation! Me cookies are getting smaller.” This two-line rant received a lot of media attention. For example, journalist Melvin Backman wrote, “Everyone’s ..read more

There are growing worries about global food security. Earlier this year, UN Secretary-General António Guterres, stated, “This year’s food crisis is about lack of access. Next year’s could be about lack of food.”[1] When lack of food is a concern, food waste should also be a concern. And, when it comes to food waste, few people think about the important role played by packaging labels. I first wrote about his subject nearly a decade ago.[2] In that first article, I quoted Dr. Londa Nwadike, an Extension Food Safety Specialist, who believes that a lot of perfectly good food gets tossed because o ..read more

With inflation shredding consumers’ budgets, consumer packaged goods (CPG) manufacturers and retailers are feeling the impact. Food writer Simon Harvey (@SidflashHarvey) believes things are only going to get worse before they get better. He predicts, “Decades-high inflation rates in the western world are likely to get worse before they peak, presenting operational challenges right across the supply chain.”[1] CPG manufacturers are caught in this inflationary maelstrom. Harvey explains, “Inputs have gone up so much that some industry executives and managers have never faced such a taxing enviro ..read more

Early in the COVID-19 pandemic, consumers made a run on some products (e.g., toilet paper) leaving store shelves empty and consumers looking for alternatives. As a result, e-commerce channels lit up as consumers hunted for products. Brand loyalty was tossed out the window as desperate consumers made product availability and price their motivating purchase factors. As we slowly emerge from the pandemic, brands are looking to regain their footing with their one-time loyal customers. John Williamson, an Account Leader at ddm marketing + communications, suggests consumer packaged goods manufacture ..read more

Nothing is more central to the consumer packaged goods (CPG) sector than supply and demand — and few things affect supply and demand like economic trends. During the pandemic, when going out in public worried many consumers, savings increased and buying patterns changed. For example, spending on clothing and cosmetics dropped while spending on home goods and staples rose. That pattern was broken when the economy opened up and consumers, eager to once again engage socially, started dressing up and going out. During this period of changing consumer behavior, retailers experienced an inventory mi ..read more

A strong consumer packaged goods (CPG) sector is essential for a healthy U.S. economy. Brad Cook and Steve Hewitt, partners at Wipfli, report, “Consumer spending accounts for nearly 70 percent of U.S. economic activity.”[1] They also note that the CPG sector has helped stave off what like looked like a certain deep recession. They note, “Shoppers buoyed the economy — or at least kept it from falling deeply into recession. However, they’re [feeling] the pinch from inflation and rising interest rates.” Changing consumer behavior is only one trend to which stakeholders in the CPG sector need to w ..read more

Trying to paint a picture of the current consumer packaged goods (CPG) space would require an artist experienced in abstract impressionism. Looking at such a picture, viewers would be forced to ask, “What’s going on here?” McKinsey & Company analysts, Tamara Charm, Jason Rico Saavedra, Kelsey Robinson, and Tom Skiles, suggest such a picture should be called “The Great Uncertainty.” They write, “Whether it’s at gas pumps or in grocery stores, people across the United States have been feeling a pinch in their pocketbooks. … Inflation is the highest it’s been in decades, and consumers are wor ..read more

Humans possess the remarkable ability to think about and plan for the future. In the case of climate change, however, humans have done a lot more thinking than planning. As a result, we are now feeling the adverse long-term effects of changing weather patterns. Both consumers and enterprises in the consumer packaged goods (CPG) sector are taking notice. Analysts at NielsenIQ observe, “Positive consumer sentiment toward sustainability has been growing for more than a decade, but the impact of purchasing preferences has yet to inspire a green revolution within the retail industry. Two rapidly em ..read more

Nestlé, the largest publicly held food company in the world, recently announced it was investing “40 million Swiss francs ($42.88 million) to launch a new production facility in western Ukraine.”[1] Olena Harmash, a Strategic Communication Adviser with CGIAR, notes, “Nestlé is one of very few international companies to announce new investments in Ukraine since Russia invaded the country in February 2022.”[2] Nestlé executives have learned that carrying on operations as a food company during conflict can be tricky. They have been criticized for continuing to do limited business in Russia in the ..read more

Back in the era of general stores, decisions about which products were available to consumers were primarily made by store owners. As retail journalist Daphne Howland (@daphnehowland) observes, “Once upon a time, consumer products like soap, sugar and soft goods were found in bins and shelves in general stores, measured out in small quantities by amenable shopkeepers.”[1] Since stores were small and shelf space limited, consumer product choice was basically a take-it-or-leave-it scenario. As Howland notes, “Those days are gone.” She fast-forwards to the mid-twentieth century and observes, “Sho ..read more