Shrinkflation hits orange juice again鈥擯ascal Th茅riault on Radio-Canada
Often considered a symbol of shrinkflation, orange juice is shrinking again, . A modified bottle of the Tropicana brand is making its way into grocery stores in a format reduced to 1.36 liters.
Will other brands follow in Tropicana's footsteps?
It's inevitable, according to agronomist and economist Pascal Th茅riault, Director of 捆绑SM社区's Farm Management and Technology Program. Especially since orange crops are at the mercy of weather conditions and disease.
"All players pay the same price for their oranges," Th茅riault told Radio-Canada. "Raw materials account for 40% of costs. And the price of oranges has risen so much that the others will have no choice but to follow suit."
In his view, the additional justifications put forward by Tropicana are simply a way of "sharing the blame between the consumer and the processor."
The trend in orange prices is "completely crazy," says Th茅riault, who sees no sign of a slowdown in the short term.
"It's really Brazil, the main exporter of oranges, where things are going badly,鈥� explains the expert. "And we're expecting another 25% drop in yield in the next harvest cycle due to disease."
"Shrinkflation is the only way to limit the apparent rise in product cost," notes Th茅riault, pointing out that the entire production chain has come under economic pressure in recent years.