We’ve all had the thrill of going to the grocery, picking up a favorite product and reading on the label that the “new and improved” item contains “10 percent more calcium” or “20 percent more fiber” or “30 percent more whole grain.”
If you’re like me, you feel good about this turn of events. We’re eating just a little healthier without even breaking a sweat. Good for us!
Now, here’s what you won’t see: “New formula. Now with cheaper ingredients!” But that’s exactly what some food manufacturers are doing – quietly swapping out pricey ingredients for less expensive ones, according to the Wall Street Journal.
Unless you have a box of the old formula to compare against the ingredients list in the new formula, good luck finding any evidence of the changes.
Hershey Co. is substituting vegetable oil for some of the cocoa butter previously used for its candy-coated Kissables. The company confirmed the ingredients list now includes vegetable oil – but didn’t until recently. Spokesman Kirk Saville stopped short of saying the company is cutting costs, however.
“We don’t specifically comment on individual product formulations in that context,” he said.
In another example of ingredients swapping, Pillsbury is now putting walnuts in its turtle cookies instead of pecans, the Journal said.
When I compared the price of the nuts last week, I was surprised to find a half-cup of Diamond brand chopped pecans cost $2.68 – 83 cents more than the same amount of Diamond chopped walnuts. So it’s easy to understand why Pillsbury would pull the switcheroo. The alternative would be to increase the price.
I guess another option is Pillsbury could make less profit – but let’s be realistic. No corporate executive who wants to remain employed is going to pick that alternative.
Food company leaders are reluctant to increase prices, too. With the costs of gas and other necessities going up, many shoppers simply can’t pay more for their groceries. Hershey estimated Aug. 15 that its cost for commodities including cocoa, sugar and corn sweeteners will increase by about $110 million to $120 million this year compared with 2007.
So, yeah, I get it. Pillsbury, a General Mills brand, and Hershey are helping us out. Pat Hester appreciates their efforts, too.
But the married mother of three thinks shoppers could end up feeling duped if their favorite products change – even subtly – and they can’t figure out why.
“Some people buy a product because they’ve used it for years and they’re used to the quality,” she said.
The 50-year-old Fort Wayne woman would like to see changes clearly listed right on the label.
“I think it would be better if (food manufacturers) owned up to it,” Hester said.
James Lowry, a retired Ball State University marketing professor who studied retail, described the trend as part of “trying to retain a profitable business.”
General Mills has found a way to cut costs on producing its popular Hamburger Helper line by reducing the number of separate flavor packets in boxes that previously contained more than one. A spokeswoman told me it saves money and streamlines the cooking process for customers. The ingredients, though, remain unchanged.
Manufacturers are trying to keep food prices at an attractive level while trying to maintain the same basic quality, Lowry said. But he agreed with Hester that they’re risking a backlash.
Is substituting ingredients a big deal? Maybe on one product it is and on another product it isn’t. Shoppers need to decide for themselves.
The point is, you can’t decide if you don’t know.
Two weeks ago I wrote about the trouble I had finding presidential campaign-related merchandise in Fort Wayne. After that column ran, I heard from a local artist who has designed an Obama T-shirt that’s now available from her sister’s Angola-based sign business.
Lynn Rowe Reed of Fort Wayne designed the shirts that sell for $21 with a design just on the back and $25 for designs on the front and back. To see the “We” shirts, go to www.jrowesigns.com or call 260-668-0256 to place a phone order. Shipping and handling costs $10 per order.
This is the last Retail Report column. I’ll continue to cover retail stories for The Journal Gazette and welcome tips and story ideas on various retail topics. Please e-mail me at sslater@jg.net or call 461-8262.
