Redeflation: A strategic shift

This measure, considered by many as abusive towards the consumer, is the strategic change in these times of "Inflation".

What is Reduflation?

In economics, it is used to describe a reduction in part, quantity and size of a product without changing the final price for consumers. A not new tactic, it resurfaces every time industries deal with high prices and shortages of raw materials.

For example, think of your favorite brand of potato chips, normally there were 20 chips in a bag, now you get 15 for the same price. In this way, companies reduce costs and increase profits without consumers realizing that they are raising prices; making reduflation a strategic shift.

Brands vs. Market | Strategic change

The food industry is one of the most affected, so that large food manufacturers are singled out for adopting this reduflation measure, and among some of them we can mention are:

Mondelēz International, Inc. which is a U.S.-Mexico multinational conglomerate engaged in the confectionery, food and beverage industries, with headquarters in Deerfield, Illinois, Chicago and Mexico City, employing some 100,000 people worldwide.