29/10/2026
Special K’s sticker price rose 18%. The real price rise was 26%.
The pack went from 535g to 500g. The price went from $7.65 to $9.00. Per 100g, that’s about $1.43 to $1.80.
Shrinking the pack lets a supplier protect margin without a price rise that jumps off the shelf. Torrens University research suggests shoppers react more to a changed price than a changed pack size. But a Finder survey of 1,010 Australians found 74% had noticed products shrinking.
The cover is thinning. The federal government is consulting on a notification system, more prominent unit pricing and fines for companies that don’t comply.
My view: you can shrink the pack to protect margin. You can’t shrink the cost of lost trust. If customers would accept an honest price rise, that’s the cheaper option.