Here Is How Wal Mart Is Squeezing Every Last Ounce Of Decaffeinated Inflation

Tyler Durden's picture

Some interesting insights on how even Wal-Mart is doing its best to mask inflation by penny pinching here, there and soon, everywhere. Below is an example of 20% inflation in the span of a few weeks, which will most certainly not be captured in government statistics of food inflation. Additionally, with cotton just opening 470 ticks higher and 30 away from limit up, we hope readers took our advice from a month ago.

Courtesy of Survival Blog

Carlos in the U.P. wrote: "I noted with interest that the Wal-Mart I shop at had cleared the shelves of "Great Value" brand coffee in 39 oz cans for about 2 weeks. Today the new can appeared, with the following differences: 1.) Can is now 33.9 oz, down from 39 oz. Also conspicuously missing is the conversion of 2lb, 7oz therefore no comparison in pounds is easily made. 2.) Price for this smaller can is up from $9.88 to $10.48, by my rustic math an approximate 20% increase! 3.) Contents of can are no longer 'Premium Columbian' Decaffeinated. Now labeled '100% Classic Decaf'"

Unfortunately, we were unable to recreate a similar product SKU on Walmart's online catalog, although having seen comparable price masking gimmicks at local stores and for far more egregious inflation adjustments, we are confident this is not an isolated ploy to pass on surging input prices. We invite readers to share comparable stories of under the radar price pass throughs to the sheeple slaughterhouse (before and after pictures are welcome). We will compile all the responses and maybe even start a Zero Hedge inflation Crowdsourced Price Index, a/k/a a real CPI.

h/t Kyle

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Midas's picture

A great idea.  The problem is finding consistency.  If Wally world substitutes Brazilian coffee with something grown in Iowa how do you account for the difference?  I think our best bet is just to track all commodities.

septicshock's picture

The price seems to be inflated by six percent not 20 percent.

Astute Investor's picture

6% increase in price of smaller container

13% reduction in container size

1.06 * 1.13 = 1.198 or 20% increase per ounce of coffee

Pondmaster's picture

Ice cream - AT ALL STORES - ditched the half gallon square carton for the rounded corner carton = 1.75 quarts - same price as before .  Was 32 oz .for 5$ ,  now 28 oz. for 5$ = .0875 % increase in price - not a bad pocket filling scam . Hey ,do Fed include ice cream in their inflation fraudstistics?

Bananamerican's picture

12.5% increase....stealth package reconfiguration has been going on for quite a while now...I wonder how ridiculous it's going to get....

Mad Mad Woman's picture

Package reconfiguration been going on for years now. It will get even more ridiculous.

GS is short Gold's picture

Yup, orange juice vendors are doing the same thing. The longlasting standard juice carton of 64oz is now being quietly replaced with 59oz cartons. They are virtually impossible to tell apart but that's a quick 8% inflation pop as prices haven't decreased. 

curbyourrisk's picture

Yeah, the big 96 oz. container is now 89 ounces.

Blano's picture

Personally, in my neck of the woods I haven't even seen 1.75 quarts for a while....more like 1.5.

johnhampson's picture

Price has gone from 25.33 cents per ounce to 30.91, up by 5.58 cents.  5.58/25.33 = 22.03%

Mad Max's picture

The price seems to be inflated by six percent not 20 percent.

You're just the kind of customer Walmart is looking for!

Whats that smell's picture

It is also lower quality coffee as the label no longer says 100% Colombian.

whatsinaname's picture

good for the American waistlines ?

bad for diabetes / obesity drug company CEOs ?

 

bobbymak880's picture

1.  the difference is profit!!!

2.  the new blend probably contains Vietnamese robusta bean (read: inferior).

cossack55's picture

Same is true with the GV and Max house 12 oz jars of instant have been replaced with 8 oz jars.  The SKu labels attached to shelves will provide price/oz.  up about 20 cents. oz.

Hephasteus's picture

You can't grow coffee in iowa. Coffee needs sun and A LOT of it. Drinking it is the best way to kill elephants as stuff elephants eat gets mowed down to plant coffee.

tmosley's picture

Cotton is likely up due to storms wrecking much of the cotton crop across the south plains.  We were on track for a bumper crop this year, but this nasty storm came along in the middle of harvest time and dropped 2-4" of rain, along with hail up to 3.5 in in diameter.

We were on track for a record breaking bumper crop, but now we have lost at least half the crop, maybe more (some was already harvested, about half of the fields on my way to work were already picked).

Some farmers are likely to go under because of this.  Lucky ones have already harvested, and will make a killing off of the  rapidly rising prices.

Pondmaster's picture

Since when do farmers , especially in the south , make any money on any crops , other than tobacco ?

Sean7k's picture

We subsidize the growing and sometimes the non growing of crops- especially corn and soybeans. 

MachoMan's picture

I hope you were joking about farmers making money...  if you know what the hell you're doing and don't get bitten by a string of ridiculous bad luck, you're in there like swimwear.  The only people with enough cash to pay for mcmansions, at least around here, are often times the farmers...  penny pinchers to the T...  and fairly sensible/conservative in business decisions (if they don't know about it, they don't do it).  Of course, they have the money because they don't go chasing mcmansions...  (funny how that works isn't it?).

The small farmers have all been crowded out due to economies of scale...  now, anything less than 6000+ acres of rice/bean farming is considered a small farmer...  with many over the 10k range...

If worse comes to worse, you can turn into an "insurance farmer".

Now, there is obviously less profit potential in simply owning the land...  and virtually zero if it's financed to any large extent.

arm50's picture

how about a penny's intrinsic value.

cxl9's picture

Interestingly, a circulating US nickel (1946-2010) now has a melt value of .06 and has been steadily rising. This would seem to be a good inflation/deflation hedge. Trade in $100K of FRNs for rolls of nickels; transport and store. In the case of inflation/dollar depreciation, you can eventually just exchange them for their higher melt value. In the event of commodity price deflation, you can trade them back in for FRNs. It's basically a one-way bet. Minus fuel and storage costs, of course.

http://www.coinflation.com/coins/1946-2007-Jefferson-Nickel-Value.html

 

 

Burnbright's picture

Or you could get copper pennies, 1981 and prior and make 250% instantly and rising. 

prophet's picture

Got a bead on the total value of all 1981 pennies in "circulation"?

Failure to Communicate's picture

Walgreens, of all places, is holding the line on coffee for now.

Arkadaba's picture

Two weeks ago at my local big name grocery (Canada-based), I noticed that a can of illy coffee had dropped from 14.99 to 9.99. I have no clue why there would have been such a big drop in price (and it didn't appear to be a sale). 

lizzy36's picture

It was an error on the pricing. You should have loaded up.

Illy is 16.99 a tin here (canada-based, as well).

Arkadaba's picture

I bought a few cans ;)

Strongbad's picture

Someone should start the WCPI - the Walmart Consumer Price Index.  :)

 

FEDbuster's picture

Winchester 100 rounds 9mm $23.97 up from 20.97 six months ago (and up from $9.97 six years ago).  Same with the Federal 50 rounds 9mm $10.47 up from $9.47 a month ago.

Quart of Great Value half and half was $1. about six months ago, now $1.68.

"Roll Up" prices!!

His Dudeness's picture

All quiet on the Wal-Mart front...

No toilet paper price update... hmmm, and I thought that was nicotine stains on your fingers...

FEDbuster's picture

Best everyday price on TP @ Sam's Club, but you can do better with sales at grocery stores.

If your looking for some fun after trick or treating this Sunday night, you can watch the 43 million on food stamps que up at Walmart waiting for their cards to recharge.  Of course most of them will be taking their kids to the "rich" areas to load up on their candy supplies for the next few months.  Plus, if they wait till Monday, they can use the food stamp cards to buy bags of candy half price.  The people of Walmart:

http://www.peopleofwalmart.com/

FEDbuster's picture

Best everyday price on TP @ Sam's Club, but you can do better with sales at grocery stores.

If your looking for some fun after trick or treating this Sunday night, you can watch the 43 million on food stamps que up at Walmart waiting for their cards to recharge.  Of course most of them will be taking their kids to the "rich" areas to load up on their candy supplies for the next few months.  Plus, if they wait till Monday, they can use the food stamp cards to buy bags of candy half price.  The people of Walmart:

http://www.peopleofwalmart.com/

prophet's picture

"took our advice"

= were able to formulate a profitable strategy based on our news and information.

MrSteve's picture

Costco's 3 pound Columbian coffee went from $9.99 to 11.99, close enough to 20% straight increase per my most recent purchase.

dkny's picture

Any comments on Costco's Scott toilet paper?

I can't remember how it was a couple of months ago, but when I picked a pack recently, it seemed like it had less rolls and for an extra dollar or two. (now 36 rolls, and I vaguely remember over 40 previously)

CrockettAlmanac.com's picture

Rite-Aid has Scott 12 packs for 7.49 this weekend. Stopped by and it's out of stock. I asked for a raincheck for 12 12 packs. When the clerk wrote the raincheck the price reflected an addition 2 dollar discount at the register for a price of 5.49 per 12 pack. I upped my request to 24 12 packs.

Maxwell House coffee is now $10 for 34 oz at the local grocery but about once a month they have a sale at $6 at which times I buy 2 - 4 cans.

Big attic.

Strider52's picture

I almost screamed on the commodius when I went to reload the scott TP on the roller. It was skinnier! I grabbed a back-up pack of Scott, yep, it was shorter!  They went from 4.5 inches wide to 4.1. Looks silly on the roller...I think they gave up on this recently due to public outrage.

 

His Dudeness's picture

"I almost screamed on the commodius when I went to reload the scott TP on the roller. "

Phew! You have to be careful there!

Just think what your neighbors would think if they heard you shout: 'IT'S POINT 4 INCHES SHORTER!!!'

 

 

DaveyJones's picture

even worse when he said "let me try another one!"

RobotTrader's picture

Kind of an odd chart...

Nolsgrad's picture

looks like a cup w/handle forming to me.

duo's picture

Wal-mart:  always a smaller package....always.