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ALEC in The Washington Times: Manufacturers, retailers resort to ‘shrinkflation’ amid production crisis

Experts believe the practice of 'shrinkflation' will become increasingly useful in wake of staffing shortages at factories, transportation delays and the rising cost of materials like plastics and cotton

The Washington Times
Tuesday, June 14, 2022
By: Sean Salai

Joe Trotter, director of ALEC’s Task Force on Energy, Environment and Agriculture was featured in a Washington Times article regarding the shortages of raw materials and the downsizing of products.

Sriracha sauce and tampons are going missing from store shelves as shortages of raw materials such as chili peppers and cotton push manufacturers to downsize products without raising prices.

Hot sauce maker Huy Fong Foods recently warned customers that a months-long shortage of chili peppers will make Sriracha unavailable in many places throughout the summer. Procter & Gamble, which owns Tampax and Always, reported similar issues with tampons and feminine pads.

“Shrinkflation” — the practice of downsizing products to sell at the same price — will be increasingly useful to keep some items in stock as companies sell packages with 10% to 25% less quantity.

The American Legislative Exchange Council (ALEC), a network of conservative state legislators and entrepreneurs, expects increased fuel and transportation costs coupled with raw material shortages will continue to hamper U.S. product distribution throughout the year.

“As the summer heats up, products such as cotton and hot peppers will continue to be less available, and we will continue to experience tampon and hot sauce shortages,” said Joe Trotter, director of ALEC’s Task Force on Energy, Environment and Agriculture.

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