Yes, Even Cookie Monster Is Upset About ‘Shrinkflation’ - Kanebridge News
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Yes, Even Cookie Monster Is Upset About ‘Shrinkflation’

Muppet’s rant against cookie prices sparks political reaction, White House response

By JOSEPH PISANI
Wed, Mar 6, 2024 9:17amGrey Clock 3 min

Cookie Monster is a blue furry muppet who lives on a fake street, but even he is sick of a real menace in supermarket aisles.

“Me hate shrinkflation!,” the “Sesame Street” character wrote to his 626,000 followers on X. “Me cookies are getting smaller.”

Shrinkflation—when companies shrink their products but not the price—has been a hot topic as Americans spend more of their disposable income on food than they have in 30 years . Shrinkflation saves companies money, but politicians have called it greed. It’s been showing up everywhere: fewer sheets of toilet paper in a roll; less juice in a bottle; or in Cookie Monster’s case, smaller cookies that cost the same as when they were bigger.

President Biden has been critical of shrinkflation lately, calling it “a rip-off” by companies who he said are giving Americans less for every dollar they spend.

“As an ice-cream lover,” Biden said in an Instagram video posted last month on the same day as the Super Bowl, “what makes me the most angry is that ice-cream cartons have actually shrunk in size but not in price.”

On Monday, the White House weighed in on Cookie Monster’s post.

“C is for consumers getting ripped off,” the White House posted on X . “President Biden is calling on companies to put a stop to shrinkflation.”

Sen. Elizabeth Warren (D., Mass.) told Cookie Monster she and Sen. Bob Casey (D., Pa.) “have a bill for that.”

Called the Shrinkflation Prevention Act, the bill was introduced by the Democratic senators last week. It would give the Federal Trade Commission and state attorneys general the authority to punish companies engaging in shrinkflation.

Snacks such as chips and cookies have become 26% more expensive since January 2019, according to a report by Casey released in December . Nearly 10% of the price increase was due to shrinkflation, the report said.

Oreo fans have noticed less cream in the black-and-white cookies, but the company behind them has said there hasn’t been a change to the cookie-to-cream ratio. French supermarket chain Carrefour started attaching labels to products in September warning shoppers of what it deems to be shrinkflation. And even the rich and famous have noticed: Rapper Cardi B has ranted about high inflation and rising lettuce prices . “Naaaaaa,” she tweeted last year, “grocery shopping prices are ridiculous right now.”

David Chavern , the chief executive of the Consumer Brands Association, which represents major food makers, said industry leaders understand the pressures of inflation on Americans and have asked to meet with Biden.

“This is a serious issue and needs responsible leadership, not gimmicks or muppet memes,” he said. “In the meantime, we will continue our efforts to provide the best products at the most competitive price.”

“Sesame Street” characters have been diving into real world issues on social media, gaining differing reactions from politicians.

When the Covid-19 vaccine was approved for children, Big Bird tweeted he got the shot.

“My wing is feeling a little sore, but it’ll give my body an extra protective boost that keeps me and others healthy,” he wrote .

Republican Texas Senator Ted Cruz   tweeted that it was , “Government propaganda…for your 5 year old!”

In January, Elmo asked a question on X : “How is everybody doing?,” only to get inundated with replies from people talking about their mental health and saying how bleak their lives are, garnering a tweet from Biden.

“I know how hard it is some days to sweep the clouds away and get to sunnier days,” Biden responded to the red muppet . “Our friend Elmo is right: We have to be there for each other, offer our help to a neighbour in need, and above all else, ask for help when we need it.”

Representatives for “Sesame Street” didn’t respond to requests for comment Tuesday.

As for Cookie Monster’s shrinkflation rant, Edgar Dworsky is happy to have more allies.

“I’ve been campaigning against shrinkflation for more than three decades,” said Dworsky, who calls out companies engaging in shrinkflation on his websites ConsumerWorld.org and MousePrint.org. “I welcome the help of such prominent figures as Cookie Monster and of course, the president.”

In the meantime, Cookie Monster seems to have found his own shrinkflation solution.

“Guess me going to have to eat double da cookies!,” he tweeted .



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China’s securities regulator is ramping up support for the country’s embattled equities markets, announcing measures to funnel capital into Chinese stocks.

The aim: to draw in more medium to long-term investment from major funds and insurers and steady the equities market.

The latest round of policy boosts comes as Chinese stocks start the year on a soft note, with investors reluctant to add exposure to the market amid lingering economic woes at home and worries about potential tariffs by U.S. President Trump. Sharply higher tariffs on Chinese exports would threaten what has been one of the sole bright spots for the economy over the past year.

Thursday’s announcement builds on a raft of support from regulators and the central bank, as officials vow to get the economy back on track and markets humming again.

State-owned insurers and mutual funds are expected to play a pivotal role in the process of stabilizing the stock market, financial regulators led by the China Securities Regulatory Commission and the Ministry of Finance said at a press briefing.

Insurers will be encouraged to invest 30% of their annual premiums earning from new policies into China’s A-shares market, said Xiao Yuanqi, vice minister at the National Financial Regulatory Administration.

At least 100 billion yuan, equivalent to $13.75 billion, of insurance funds will be invested in stocks in a pilot program in the first six months of the year, the regulators said. Half of that amount is due to be approved before the Lunar New Year holiday starting next week.

China’s central bank chimed in with some support for the stock market too, saying at the press conference that it will continue to lower requirements for companies to get loans for stock buybacks. It will also increase the scale of liquidity tools to support stock buyback “at the proper time.”

That comes after People’s Bank of China in October announced a program aiming to inject around 800 billion yuan into the stock market, including a relending program for financial firms to borrow from the PBOC to acquire shares.

Thursday’s news helped buoy benchmark indexes in mainland China, with insurance stocks leading the gains. The Shanghai Composite Index was up 1.0% at the midday break, extending opening gains. Among insurers, Ping An Insurance advanced 3.1% and China Pacific Insurance added 3.0%.

Kai Wang, Asia equity market strategist at Morningstar, thinks the latest moves could encourage investment in some of China’s bigger listed companies.

“Funds could end up increasing positions towards less volatile, larger domestic companies. This could end up benefiting some of the large-cap names we cover such as [Kweichow] Moutai or high-dividend stocks,” Wang said.

Shares in Moutai, China’s most valuable liquor brand, were last trading flat.

The moves build on past efforts to inject more liquidity into the market and encourage investment flows.

Earlier this month, the country’s securities regulator said it will work with PBOC to enhance the effectiveness of monetary policy tools and strengthen market-stabilization mechanisms. That followed a slew of other measures introduced last year, including the relaxation of investment restrictions to draw in more foreign participation in the A-share market.

So far, the measures have had some positive effects on equities, but analysts say more stimulus is needed to revive investor confidence in the economy.

Prior enthusiasm for support measures has hardly been enduring, with confidence easily shaken by weak economic data or disappointment over a lack of details on stimulus pledges. It remains to be seen how long the latest market cheer will last.

Mainland markets will be closed for the Lunar New Year holiday from Jan. 28 to Feb. 4.