“Cheap inflation”, “deflation” … the tricks of some manufacturers to survive inflation

Inflation is also sharpening the smarts on the shelves. Manufacturers see how their costs of production, especially for energy, rise, and their margins fall in parallel. All of the above is ultimately reflected in the final prices paid by consumers, in a fairly transparent manner. From Consumers and Users Organization (OCU)They lamented that not all companies acted the same way. Specifically, they point out that some manufacturers choose to put a small face on the issue with practices like “Reducing” (consisting of giving less product or reducing the weight of containers without corresponding price reduction) f “cheap inflation” . That is, replacing more expensive raw materials with cheaper ones so that you don’t have to raise prices.

Specifically, OCU spokesman Enrique García said that he is considering ‘downsizing’ a gun for manufacturers to “”hide” the price hike.OCU denounced these maneuvers to the National Markets and Competition Commission (CNMC). He expects this kind of practice to remain the daily order “as long as the inflation rate is close to 15% in the food sector.”

on his part since then CECU, recognized that they were aware of both “discounting” and “cheap inflation” and noted that “these practices should not occur, as they confuse consumers and cause their confidence to erode.” Like OCU, they have chosen public administrations to control these manufacturers’ behaviors.

Where winch, A company specializing in commercial outsourcing, whose president, Javier Chirk, points out that “a reduction has a double meaning: the first is Limiting family unitsso large formats make less sense, ii Keep the unit price Reduce production costs. In this sense, he explains, currently families and households “are increasingly made up of one person.” He also doesn’t believe we’re dealing with consumer deception or dishonest practice, as Sherk finds that “consumer communication is very clear.” He adds, in his opinion, that “the packaging clearly shows the sizes, shapes, and prices… and reporting the final price, in my opinion, is clear.”

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See also file “cheap inflation” as a thing of the past and asserts that “the seduction of the consumer at the point of sale is still based on the same levers that were used historically”. That is, in the distribution on the shelf, the visibility of the product and the presentation on display »Spacious enough to cover all needs from all homes. In his opinion, this is an “unbeatable” variety of Spanish homes.

complaint before the contest

Specifically, as ABC reported this summer, in the complaint filed with the CNMV, OCU indicated what publicly known trademarks it would have incurred in this type of “modus operandi”: sGallo, Danone, Pescanova, Colacao, Tulipan and Campofrio centuries. All of these brands have stood up for themselves and made sure that they are acting in accordance with the law. Pescanova, even one of the aforementioned, defended that they practice “hyperinflation” or “pathological gratification”. “In reverse, Pescanova put up for sale in January 2022 three references of hake fillets where we’re doing exactly the opposite: giving away 10 to 20% of the hake,” the company said at the time.

Another way to save costs is what is already known as “cheap inflation”, Replacing expensive raw materials with cheaper ones in order to save production costs. “It’s very difficult because you have to read a list of all the ingredients, however We have detected it in some provinces who have replaced sunflower oil with another vegetable fat, ”Enrique García noted.

How to determine it: Look for “price per unit of measure”

For an OCU spokesperson, all of the above are “dishonest” and he has advised detecting these modifications, which are sometimes just a few grams in common products like yogurt, for consideration. The price is per unit of measureper kilogram or liter “as opposed to what he calls the ‘container price’ to which we are all accustomed. “Many consumers will be surprised by some things,” he said.

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