Units keep trade honest

Supermarket customers who feel misled when products change in size but not price will be able to shop with renewed confidence next year.

Foodstuffs is introducing unit pricing across its New World, Pak'nSave and Four Square chains.

Products will be labelled at cost per 100g or litre from mid-2010 to help customers compare the price of products that come in different pack sizes.

The move will also make it easier for shoppers to see through brand trickery, where manufacturers attempt to disguise downsizing with clever packaging.

It brings Foodstuffs into line with Progressive Enterprises' Foodtown, Woolworths and Countdown stores, which had unit prices on many products for more than 10 years.

Consumer New Zealand chief executive Sue Chetwin said customers often paid more money for less product, as companies changed the size of packaging but not the price.

One example is a packet of Milo, which used to cost $4.49 for a 350g packet. The packets downsized to 310g - but the price remained the same.

Unit pricing reveals the 350g pack cost about $1.42 per 100g, before leaping to $1.60 per 100g when the packet size decreased.

Manufacturers in New Zealand must display the net weight - the cost of what is in the packaging - on their products, but many use clever disguises to make it seem you are getting more bang for your buck.

"Unit prices make it easier for consumers to spot the hidden price increases," said Chetwin. "By law the manufacturer must accurately state the volume of contents on the label. If it doesn't it is in breach of the Fair Trading Act."

A 350ml bottle of Pantene Pro-V clarifying shampoo costs about $7.69, while the 400g bottle sells at $8.49. Although the heavier bottle sells at 80 cents more, the lighter bottle appears as the same height and width of the larger one - and only three quarters full - potentially leading customers to think they are getting more.

This year, Cadbury reduced the size of its 250g chocolate blocks to 200g, but the product appears the same size in the packaging. The price remained the same, at about $3.99.

Many chip packets have also cut their net weight from 200g to 150g, but the prices - and in some cases size of the packets - remain unchanged.

Although not illegal, Chetwin said using a larger container to imply a product contains more was a common ploy.

"The unit pricing is a reality check," she said. "We've found instances of bulk bin products such as raisins actually costing more than the packaged products on the shelves, and small packs being better than buying large 'economy' packs."

Jill Brinsdon, a strategist for brand communications company Radiation, said sales "trickery" have been around forever, but the consumer is not being fooled as often.

"With Pantene it's sort of like they want to catch consumers napping," she said. "It's a trust thing, especially in a recession where the consumer is looking for authenticity.

"We're not going to believe in something that tells us little white lies, and sometimes companies forget the consumer is in charge."

Brinsdon said Cadbury will likely survive because now they are being transparent about their decisions, but other manufacturers are not being as honest with their downsizing.

Foodstuffs executive manager Melissa Hodd said the introduction of unit pricing would provide more transparent information for consumers.

"As grocery prices have increased in recent times, consumers are even more price conscious so this information will help them make better informed choices."

Have you got a consumer story? Email rebecca.lewis@hos.co.nz