The horror of shrinkflation…

By: Ben Webb

Oh, the disappointment! In dire need of a sweet treat, you select your favourite candy bar at the store, but it feels, well, too small. At the counter, on the other hand, the price seems to have gone up. It’s as though the brand is trying to pull a fast one. But it hasn’t worked. You’ve been a loyal customer for years. So you post. Social media lights up with other disappointed fans. Stock sits on shelves. And all because the brand treated its customers as knuckleheads…

This is a wonderful marketing case study of what NOT to do. And it’s exactly what German chocolate maker Milka tried and failed. It slimmed its bars from 100g to 90g and hiked the price from €1.49 to €1.99 – a 48% increase. Just one millimetre was shaved from the bar, but Milka fans were outraged. The brand had to slash its prices to shift product. 

But then things got even worse. Foodwatch – a European advocacy group that focuses on protecting consumer rights – awarded Milka the 2025 Goldene Windbeutel – Germany’s prize for the most Deceptive Packaging of the year. The Hamburg Consumer Centre even filed a lawsuit against parent company Mondelez Deutschland GmbH, which it will have to defend the move in the Bremen Regional Court.

And all because the brand was too scared to honestly confront one key fact… that prices sometimes have to rise. 

Paying the same for less may be grudgingly accepted by consumers, but the formula has been changing again. Products are getting smaller but, shock horror, also more expensive. UK marketing guru Mark Ritson has coined a new term for the phenomenon: maximiniflation. ‛It’s a clumsy name for a clumsy marketing tactic: companies maximizing price while minimizing size,’ he says. ‛I expect it to combust in waves of consumer anger this year… It’s a kick in the balls followed by a kick in the face. [It’s a] double indignity, executed without declaration.’

Milka is not alone. Many brands are trying to quietly avoid the price rise story by reducing the price of their products or services. Shrinkflation, as it’s been called, is understandable given that affordability is more visible and politically sensitive than ever. In the US, overall food prices are predicted to rise three percent this year, according to the USDA Economic Research Service . 

Food categories such as beef, fresh vegetables, sugar, sweets, and non-alcoholic beverages are projected to grow faster than their 20-year historical average. And this matters. A remarkable 43 percent of American consumers rank rising prices as their major concern, according to McKinsey’s ConsumerWise, beating tariffs, healthcare, and even job security. 

We need to talk about price – the marketing solution

Talking about price in a smart, authentic, and transparent way, on the other hand, is vital. Instead of misleading consumers, brands need to integrate their marketing teams into the campaign earlier. The trick is to make price – and the reason for any increased costs – part of a larger story about the company and the world in which it operates, from the cost of raw materials to rising wages. Be loud and, yes, a little bit proud of what you are doing to keep standards high rather than constrain price rises. Giving the consumer a heads-up and the vital information they need to understand what is happening shows respect. Enlightened consumers can choose whether or not to buy. Respect goes both ways.

It is still important to remind consumers what is special about your brand. And here’s the point: to keep the brand as good as it is – the way the consumer wants it to be – may only be possible by increasing the price. This approach emphasises that the brand is aware of current trends and the impact they are having on consumers, which also earns consumer brownie points. 

The marketing campaign does not have to be deadly serious, however. Humour can really help. The Chili’s spoof Fast Food Financing pop-up store on Manhattan’s Union Square was a brilliant idea. With intentionally trashy signs – Fast Food Prices are Out of Control! Finance Your Fast Food Today! – It was designed to look like a dodgy payday loan shop. The popular campaign – all OTT graphics and salesmen – spread through social media. 

For some brands, the best option may be to become a premium product, in which case a higher price can be cleverly highlighted . However, when times are hard, brands must avoid Maximiniflation, unless the strategy is supported by an honest and compelling marketing story. Brands that introduce surreptitious product reductions and price rises will – quite deservedly – be left on the shelf…

If your brand is navigating pricing changes or complex messaging, reach out to us for help.