Reduced portions hide cost increases

In the break room at Northeast CONTACT one day last week, one of our two Volunteers of the Year for 2007, Beverly Mullins, said: “Gerry, have you noticed that Hellmann’s Mayonnaise has reduced the size of their quart of mayonnaise jar from 32 ounces down to 30 ounces? Also, they have kept the price the same. That’s a hidden 6.6 percent price increase, in my book.”

This author has been very much aware of the reducing of the sizes of packaging in the food industry, most notably in the size of many brands of coffee, candy bars, ice cream and cereals. But the gold standard of mayonnaise, the Hellmann’s brand (so-called in the East) and Best Western (on the label of the same product west of the Rockies), came as a big surprise. This revelation demanded some research.

When I was growing up in the ’50s, my mother, the late Priscilla B. Palmer, the household’s solitary food shopper, always insisted on purchasing the Hellmann’s brand, a product of Unilever Bestfoods. If it was some other brand of mayonnaise, it had no place in our refrigerator. That Hellman’s tradition is now in its second full generation, and threatening the third.

Experience has shown that every family has its brand favorites, the desired goal of the marketing gurus. Once the buyer has locked on to a favorite brand, often it takes death to unwrap one’s hands from that product. Yes, it is irrational behavior, but it is real.

Ketchup brands, who cares as long as it is red? Mustard brands, Raye’s Down East is great for some, Grey Poupon for others, but for the rank-and-file, any yellow product will do. Woe be to family members who fail to buy that favored brand.

In 2006, Hellmann’s reduced the quantity and published a little statement to explain its dastardly deed. “At Unilever Bestfoods we have always taken great pride in offering the highest quality products at a reasonable and fair price. Recently, inflationary pressures have been brought about by increased costs of raw materials. Rather than raise our prices, we chose to slightly reduce the size of the 32 ounce quart and 16 ounce pint. This is the first time in over three years we have had to increase costs to our consumers.”

There you have it, straight from the corporate mouth. Perhaps there is some license taken in commenting about reducing the size of the quart and the pint that might give the weights and measures people some serious heartburn. Perhaps reducing the size of the 32 ounce container might be a better word choice. On the positive side, at least the company made a public statement. There are many organizations that do not explain their actions.

Consumer research has clearly shown that food buyers are much more price-sensitive than size-sensitive. Therefore, it is very possible to monkey around with the size of the cereal box and contents, but messing with the price is a marketing no-no. When the price gets raised, the consumer might refuse to buy or, horror of horrors, go to a competitor’s better-priced product. Both of these choices harm sales and profits.

Reducing product size while holding pricing the same is not illegal or particularly deceptive. Unit pricing, available in most stores, also helps shoppers make wiser decisions without bringing their calculators into the store. However, the informed and caveat emptor food shopper, like CONTACT volunteer Beverly Mullins, recognizes that vigilance is an essential part of the marketing process. To paraphrase the popular Hellmann’s jingle, “Bring out the Hellmann’s and bring out the LESS!”

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded nonprofit consumer organization. Individual membership costs $25; business rates start at $125 (0-10 employees). For help and information write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.