Canadian consumers face shrinkflation in grocery stores and the impact is greater in racialized communities

BY PAUL JUNOR

There is no doubt that average Canadian consumers are feeling the cumulative effects of inflation in their pocketbooks. Rising energy costs, food prices, and housing expenses have taken a financial and economic toll on Canadian’s income and savings.

In an article by Corne van Hoepen, it notes that shrinkflation is defined by business experts as, “A tactic companies use to reduce the weight of a product without increasing the cost, or swapping our ingredients for cheaper alternatives.”

A study by Dalhousie University, the University of Guelph, the University of British Columbia and the University of Saskatchewan estimated that food prices will go up between five and seven percent in 2023. The report states,  “In 2023, it is expected that Canadians will continue to feel the effects of high food inflation, and food insecurity; affordability will also be a big issue with rising food prices. Canadians will still need to be prepared to spend more in the coming year.” The report attributes the higher food prices to climate change, transportation and energy costs,

A family of four that is made up of a man between 31- 50, a boy between 14-18, a girl between 9-13 and a woman between 31-50 will have spent about $16,233.41 on food in 2023, which represents a jump of $1,065.60 from 2022 (24% increase). The report notes, “Vegetable prices are expected to increase between six and eight percent in 2023, the most of all the food categories. Meat, bakery and dairy items will see jumps of between five and seven percent next year. Fruits will see prices increase between three and five percent.”

With respect to shrinkflation, the article mentioned that it is a strategy that companies have adopted because they think shoppers are less likely to notice a change in a product’s net weight, one they often disguise with new, brightly -coloured labels.

Consumer items that reflect shrinkflation include: household cleaning and personal hygiene products. Dustin T tweeted at @stzirulin that chicken wings, “Went from 740g for $14 to 600g for $15.” Many people may wonder about the legality of this reduction in package for a greater price, but it is legal as long as the package is labelled. In fact, the advice experts give to shoppers is to examine the price per gram, or millilitre to help consumers find the most affordable option.

Many individuals that I spoke to within the African Canadian community have commented on the high prices for items that they buy at stores that cater to Black, African or Caribbean communities. Many who frequent stores such as: Niceys, Danforth Food Market, Fokak African Foods, New World Food Market or Mosaic Wholesalers can attest to the higher prices for basic food items, as well as meats and food products.

One of the most popular grocery stores that African Canadians shop at is Danforth Food Market which has six locations in the Greater Toronto Area. When I checked the prices for basic food items, you can see a steep rise in prices from October 2022 to March 2023.These are the prices that I observed from flyers during this interval:

1. Fresh cassava increases from 99 cents per pound to $1.19 cents per pound
2. Fresh Costa Rica sweet potatoes went up from $1.39/pound to $1.99/pound
3. Fresh cooking banana jumped from $1.19/pound to $1.99/pound
4. Fresh chicken leg quarters jumped from $44.99/18 kg box to $55.99/18 kg box