Through its website and daily newsletters, The Peak (a ZoomerMedia property) offers Canadians the news they need to understand business, tech, and other must-know stories.
In this round-up, The Peak looks at how researchers showed that shrinkflation – products in grocery stores getting smaller – is happening and highlighted some of the worst offenders. Plus, introducing weekend cruise ship getaways and the idea of a digital loonie.
New Study Shows Shrinkflation is Real
If you can’t shake the feeling that your favourite bag of chips has gotten lighter, there’s now proof you’re not going crazy.
Driving the news: A new study on shrinkflation at Canadian grocery stores found that 20 per cent of the products analyzed by researchers have gotten smaller over the past five years, with some weighing as much as 25 per cent less than they did in 2019.
The worst levels of shrinkflation were found in poultry, cooking oils, processed meat, baby food, and products with high fat and sugar content.
Why it matters: The shrinkflation game might just be getting started. With consumers now pushing back on price hikes, more brands could try shrinking their products to give the impression of reasonable prices to bargain hunters.
Zoom out: Countries like South Korea, Hungary, and Brazil have passed laws forcing companies to add a note to any package that they’ve shrunk, while France has asked the EU for permission to launch a similar mandate.
One French grocer, Carrefour, took matters into its own hands, slapping shrinkflation signs on products to warn customers.
Bottom line: Brands are going to maximize their profits one way or another, whether it’s by raising prices or lowering their costs by only filling up the chip bag a quarter full. —Lucas Arender
What is a Digital Loonie?
As cash usage declines, there’s growing talk about Canada introducing a digital currency. Recently, Bank of Canada staff made their boldest statement yet on digital currency, suggesting in a report that “it’s likely” we’ll need a digital form of cash – though this isn’t the central bank’s official stance just yet. While the BoC has been hesitant about the need for digital currency, two things are happening that may change their minds: fewer people using cash and more folks using cryptocurrencies not backed by central banks. In 2022, cash payments only made up 10 per cent of transactions, down a lot from 59 per cent five years ago, and there’s been a 13.6 per cent jump in crypto users from 2022 to 2023. A central bank digital currency (CBDC) would be like digital cash – it’s worth the same as cash, doesn’t earn interest, and you don’t need an ID to use it. The difference is you can store it on your phone or a card, and it’s not tied to any commercial bank. Countries like Australia and China have already embraced this concept. But, Canadians have mixed feelings: 36 per cent find digital currencies appealing, while 30 per cent aren’t sold on them yet. Still, it’ll take more research before a digital currency becomes a reality – we’re talking years down the road. And for the 31 per cent of you who still love using cash for daily stuff, don’t worry – the BoC says a CBDC would work alongside cash, not replace it. —Meera Raman
Cruises Move Into Weekend Getaway Territory
The world’s second-largest cruise ship will make its maiden voyage this week, but it won’t be a long one.
Driving the news: This week, the 1,188-foot Utopia of the Seas will set sail on a 3-night weekend getaway. Royal Caribbean, the ship’s owner, says it’s the first cruise operator to debut a new ship with this short of a trip. It’s definitely the first cruise to have Meghan Trainor as its official “godmother”.
The inaugural trip, which the company says will focus on “weekend energy” (whatever that means) bucks the trend of companies launching their flashy new vessels with weeks-long voyages.
Why it’s happening: Royal Caribbean is betting that shorter, cheaper cruises will lure more people to their ships, especially first-time cruisers. Reeling in those first-timers is the key to repeat customers – 82 per cent of people who take a cruise say they plan to go on another.
Why it matters: More travellers are prioritizing shorter, frequent getaways that fit around work schedules and holidays. Not only do these “micro-vacations” require a lot less planning, but they help make travellers’ budgets and scarce vacation days go a little further.
Zoom out: Taking shorter trips more often is better at reducing stress than taking longer trips. For the 38 per cent of Canadians dealing with workplace burnout (and limited vacation days), the weekend getaway could be the answer. —LA
Visit The Peak’s website and sign up for the free daily email on Canadian business, tech, and finance that you’ll actually enjoy reading.
RELATED:
