Summary of Key Points
This news report exposes a hidden method of price increase in the fast-moving consumer goods (FMCG) industry: brands and distributors use non-standard product volumes (such as 426ml, 468ml, 588ml) in place of traditional whole-number sizes (330ml, 500ml, 600ml), leading consumers to mistakenly believe they are getting a better deal or experiencing innovation. In reality, this is a clever way to raise the unit price without being obvious. Behind this tactic lies a joint profit chain involving brands and distributors, leaving consumers unaware of the extra cost they are paying, while simultaneously raising concerns about industry trust and regulatory oversight.
1. Non-standard volumes are not an innovation; they are a disguised form of price hike
Traditional FMCG products come in whole-number sizes (e.g., 500ml beverages, 600ml beers) due to production line efficiency and consumer perception. However, the new sizes like 426ml, 468ml, and 588ml are not designed for a better user experience but as calculated methods to increase prices:
- 426ml beer: Contains 14.8% less than 500ml (about half a sip less), yet the price is higher, allowing brands to charge more under the guise of “premium” products without consumers noticing the reduction in volume.
- 588ml beer: Contains 2% less than 600ml (almost imperceptible), but saving 144ml of liquid per box, which can result in significant cost savings for large-scale production.
- 468ml ice black tea: Contains 32ml less than 500ml; although the price is lower (2.2元 vs. 3 yuan), the actual price per milliliter is higher.
The essence is that brands avoid direct price increases by using smaller packages that appear similar, either making you pay for less product or paying a higher price per unit of volume.
2. The “low-price illusion” in snack vending stores
Snack vending stores (e.g., Haolaiwang, Mingminghenbang) often advertise lower prices, but many products are “channel-exclusive” with specific volumes:
- Kangshifu ice black tea: Sold for 2.2ml in vending stores and also for 2.2 yuan in supermarkets (500ml), offering 32ml less for the same price, resulting in a 6.8% higher unit price.
- Leshi chips: Sold for 2.8 yuan per 35g in vending stores and 3 yuan per 40g in supermarkets, seemingly cheaper but with a 6.7% higher unit price.
- Oreo/Suwanyuan: Vending store versions are 10-20g smaller than supermarket ones, leading to a 15% higher unit price.
These “special editions” give consumers the illusion of getting a better deal, but in reality, they are just being exploited by brands and distributors.
3. The hidden price increases in beer
The non-standard sizes in the beer industry are even more concealed:
- Yanjing V10 white beer (426ml): The volume is reduced by 14.8% to increase the unit price without being noticeable, with the size chosen through cost calculations.
- Yanjing A10 lager (588ml): The reduction of 2% is designed to be imperceptible while still saving costs.
Why not use whole-number sizes like 430ml or 590ml? Because these sizes are determined after calculating the necessary volume reduction to avoid consumer awareness.
4. Who benefits, and who loses in this profit chain?
Everyone except consumers makes a profit:
- Brands: They profit on both ends—selling 500ml products in supermarkets to maintain their image and selling reduced-volume versions in vending stores to target lower-income markets, with the savings going directly into their profits.
- Distributors: They attract customers with lower prices and earn higher gross margins on these reduced-volume products (e.g., Mingminghenbang’s margin increased from 7.5% to 9.7%).
- Franchisees: Their revenue is halved, with a payback period extending from one year to four years due to pressure from both the supplier and consumer expectations.
- Consumers: They end up paying more for less, thinking they are getting a bargain.
5. Can this hidden price increase continue?
This practice relies on consumers’ trust in “low prices,” but that trust is starting to waver:
- Consumer awareness: More people on social media are complaining about smaller package sizes and incorrect product volumes. Once the illusion of cheapness is shattered, the industry model will collapse.
- Industry competition: The two dominant snack vendors (Mingminghenbang, Wanchen Group) control over 76% of the market; with limited growth potential, they can only rely on further volume reductions to maintain profits, leading to a cycle of decreasing trust.
- Regulatory action: In 2025, the State Administration for Market Regulation fined Mingminghenbang and Zhao Yiming 1.75 million yuan for non-compliance. Although the amount is small, it signals the end of unregulated practices, and non-standard sizes will eventually come under regulatory scrutiny.
Final reminder: Next time you shop, check the product volume. If it’s not a whole number, someone has likely calculated a hidden cost for you.
This analysis explains the logic behind these hidden price increases in plain language, helping consumers understand the tactics used by brands and distributors to avoid being deceived by low-price illusions. The key is to compare the actual cost per milliliter or gram to determine if a product is truly a good deal.