Articles
Avoid #Shrinkflation with a better recipe
arrow_backTo the overview25 September 2024 | Procudan A/S
Consumers and retailers alike have become aware of the need for manufacturers to shrink products to keep prices stable. An optimised recipe can make shrinkflation unnecessary.
It's no secret that food manufacturers have struggled to keep prices and volumes stable in recent years.
An uncertain global market has, at times, led to rising commodity prices, which have subsequently led to a higher price per kilogram of finished product in the shops.
A common strategy to avoid discouraging consumers has been to reduce the size of products rather than increase the price.
The phenomenon has been discussed throughout Europe and internationally as 'shrinkflation'.
The Danish media have regularly run stories about how a popular ice cream, for example, has suddenly shrunk, while a supermarket chain in France has even warned its own customers about the new, smaller packaging.
The path to an optimised recipe
Food manufacturers can't control whether global commodity prices rise or fall. However, they do have control over the composition of their recipes.
The Danish company Procudan has helped many Scandinavian manufacturers find ingredients that are both right for a recipe and delivered via a strong supply chain.
Experience shows that the best solution is to optimise recipes based on a holistic approach that takes into account supply, production and the latest technological possibilities.
Procudan has published a guide providing advice on recipe optimisation and how other customers have avoided shrinkflation.
This article is written by:
Procudan A/S
Procudan are experts in ingredients and packaging, and we believe that value is co-created.
At Procudan, we have a special capability and desire to learn about the business of our customers and partners. With insight, respect, and a proactive approach, we are able to increase the efficiency and value of the whole process from farm to table. From raw materials to the finished product. This is known as supply chain management, however, our customers rarely operate in a straightforward and linear world. Their world is often complex and multidimensional, and it requires close and open collabora