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The Case of the Shrinking Cadbury Eggs

Fishbone said:
Inflation at 13 percent? More like a third that. If inflation was at 13 percent
there would be a nationwide depression, a worldwide recession, and violence in the streets.
This is just the candy makers pulling a fast one.

But how many years were the price and size kept the same despite inflation? Could this be a lump correction that makes up for a few years of changes in costs that weren't previously passed on to the consumer? I don't really know, not being in the candy industry.
 

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Wal-Mart's Gummi bears used to be 11.5 oz. packages. Last night I bought one of the last two of these at the bolingbrook wal-mart. All the rest were 9 oz. packages at the same price.
 

I think it has to do with two things. Companies are constantly under increasing pressure to increase profits. They can't constantly raise prices because everybody would see the increase. By reducing the container size and maintaining the price, fewer people will notice the switch so sales remain roughly the same and profits increase.

The other reason has to do with standardization. In Canada, Coca-Cola used to be sold in 600 ml bottles. then one day, the bottles were reduced to 591 ml. I thought that was rather odd until I realized that 591 ml equals 20 Fl. Oz. Which is the size of the American Coca-Cola bottle.
 


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