Page 5 - Default Effect News Today : Breaking News, Live Updates & Top Stories | Vimarsana

And, kai, what do you think about companies using shrinkflation? you know, keeping prices the same, but making the product smaller? i mean, is that effective? if shrinkflation is effective depends very much on the perceptual threshold. so, for example, in weight, if i compare two weights, i need at least two grams of difference for 100x100 grams to perceive that difference at all. now, over time, that becomes more, so i maybe forget that last week, you know, that carton of milk or that little piece of tea or so was slightly heavier than this week. so, companies understand what the perceptual t...

Years ago, for example. so, kona, i'mjust wondering, do we as consumers who, let's be frank, have been used to pretty cheap food for some years, do we have to just now get used to these higher prices? i think the whole 2000s and early 2010s where we used to enjoy really good prices for pretty much everything, we enjoyed low inflation for the longest time — those days are gone. we're now going back to the �*70s and �*80s, not skyrocketing. inflation will come down, but we're not going to see the rock—bottom prices that we saw back in the early 2010s. i think those days are gone, unfortu...

That can continue to be fraught with risk. and the final thing is the other producing regions, you know, we are seeing some sort of climate change, unfortunately, which does create havoc across the world, particularly tropical countries. so whether it's floods or droughts, inevitably you're going to see some of that in some key producing region. and i think that, again, may affect the supply side. so bottom line, unfortunately, i think prices are not likely to get back to levels we saw pre 2019, the pre—covid levels because the whole world has structurally changed. costs are higher, inflatio...

Was absorbed by the company and 50% was given back to the industry, so to the market. but again, this is up to the fact that we can do it because we are a family company. and antonio, you negotiate with with all the big retailers around the world. i'm wondering how difficult have those negotiations been, given these surging prices? yeah, you know, i totally understand also their position because if i compare what is happening to retailer in this moment, you know, costs like energy that in the past were less than 1%. now we are to five, six, 7% that at the end they buy and very sell the product...

Perceptual threshold. so for example, in weight, if i compare two weights, i need at least two grams of difference for 100 by 100 grams to perceive that difference at all. now, over time, that becomes more so i maybe forget that last week, you know, that carton of milk or that little piece of tea or so was slightly heavier than this week. so companies understand what the perceptual threshold for the different units is, they have good chances to make shrinkflation successful. kai, are retailers, are they nervous about raising prices? oh, yes. that is a big issue.