Shrinkflation is a “dangerous strategy” for manufacturers of branded products to embark upon, as it shows a complete misunderstanding of how consumers connect with brands, a leading food and drink analyst has argued.
Food price inflation is expected to stabilise over the next few months – despite recent reports of big food price increases from Waitrose – according to market research organisation BRC-Nielsen.
Food price inflation fell to 4% in November from 4.4% in October, according to the latest shop price index compiled by the British Retail Consortium (BRC) and Nielsen.
Higher energy and raw material prices coupled with fragile demand and weak retail pricing could put many food manufacturers – particularly bakers – under intense margin pressure this year, analysts are predicting.