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I heard about this on Marketplace Morning Report yesterday, and thought it was interesting. Kellogg's is shrinking the box size of several of its brands of cereal. They aren't, however, planning on reducing the price accordingly.
Apple Jacks, Cocoa Krispies, Corn Pops, Froot Loops and Honey Smacks will all be about two and a half ounces lighter starting this month. According to the LATimes, the effective price increase is intended to offset rising production costs. The cereal maker wouldn't say of they have plans for similar treatment of other cereals, but I wouldn't be surprised.
I totally understand that prices on everything are going up and that companies have to pass that on to the consumer. I'm just amused by the clever ways in which companies accomplish that.
