The food industry has struggled with more expensive goods, electricity and shipping in the past year. Several have been creative in the search for new ways to fatten the bottom line. Among other things, Orkla has shrunk several Nidar bags of sweets: Bamsemum’s large bag went from 250 to 220 grams. Licorice boats were slimmed down from 250 grams to 200 grams. Smørbukk got fewer caramels when the bag was changed from 192 to 150 grams. Shrinkflation is when the contents of the package shrink, without reducing the price. Group CEO Nils K. Selte was not aware of the shrink-inflation trend in his own group until news showed him the examples. – My first reaction is that I don’t think this is fair. I don’t think this is right, and this is something we will dive into and understand if we have taken advantage of that way of increasing our earnings, he says. Group CEO Nils K. Selte in Orkla has been working furiously on reorganizing the group since this spring, and did not know that Orkla’s goods have shrunk. Photo: Ole Berg-Rusten / NTB Promises an end to shrink inflation Several of Orkla’s brands have been sales successes for generations. Now Selte promises an end to the price gouging. – Now we must dig into it, and understand it, and make sure that we do not continue like this in the future, he says. – Why is this not “fair”? – I think it is hidden in a way. It is not ethically correct to adjust for increased costs in that way, he says. Orkla presented the results for the months of July, August and September on Thursday. The group does far more than food, and increased its turnover to almost NOK 15 billion. The result before tax was 2.2 billion. They announced that food prices must continue to rise, because the prices in the shops are delayed and have not caught up with all the cost increases this year. The government asks more people to do like Orkla When other suppliers were confronted with shrinking, explanations about everything from food waste, less plastic and unwieldy bottles have been put forward. But researchers and politicians believe the industry is trying to make more money without customers being startled by the shelf price. Earlier in the week, the government came to terms with shrink inflation when Consumer Affairs Minister Kjersti Toppe (Sp) asked the industry to behave itself. Now she is happy that one of Norway’s food giants takes angry customers seriously, and says frankly that the marketing is unethical. – It should really just be missing. Consumers win here, and that’s how it should be. I agree with Selte that it is not ethically correct to compensate for increased costs in this way, says Toppe to news, and continues: – I encourage other grocery companies to follow Orkla’s example. Kjersti Toppe is Minister for Children and Families, and is responsible for the consumer area in the Støre government. Photo: Håkon Mosvold Larsen / NTB
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Now the Orkla boss promises to drop the price trick – news Norway – Overview of news from various parts of the country
