In China, Consumer Goods Companies Cut Costs With Smaller Packaging

Consumer goods manufacturers in China, including food companies, are launching products with smaller packaging to manage production costs. Smaller sizes also help companies to protect their bottom lines without running afoul of the National Development and Reform Commission's anti-inflation policies that encourage companies to maintain their prices. China's government, fearful of inflation's possible impact on economic growth and stability, are very sensitive of price increases and recently fined Unilever $300,000 for announcing future price increases in the media. Examples of smaller packaging moves include Cofco Coca-Cola Beverages Ltd.'s and Pepsi's release of 500-milliliter bottles and Master Kong's introduction of 450-milliliter juice bottles.