How Moneyball Ruined Your Favorite Snacks

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Across every industry, quality, service, and choice have all gone down while prices go up. Shrinkflation is no longer a one-off tactic, but instead a permanent strategy ingrained across corporate America. It’s not that you outgrew your childhood favorites but rather they became objectively worse.

Yet decades ago in the 80s, 90s, and 2000s, these same companies were creative and innovative. They dreamed big - launching new brands, products, and formats beyond to win customers on merit as much as emotion. They took pride in what they invented. Today, all that ambition has been liquidated in favor of ruthless short-term profit engineering.

Cost-cutting is nothing new, but everything changed in 2011 with the release of Moneyball. The film was more than just an underdog sports story. What the Social Network was for nerds, Moneyball was for suits. The movie spread through business schools and company HQs. Ultimately, winning was presented as a math problem - not a creative one. This gospel reached boardrooms, consultants, executives, and Wall Street. No one wanted to be the blind, stubborn, scout, much less invest in them. Everyone wanted to be Jonah Hill, Brad Pitt, and the overachieving, lean, data-driven Oakland A’s.

No industry weaponized this ethos more than consumer goods, who had been long looking for an excuse to trade away the never-ending pressure of innovation for the safe, predictable, and clinical science of value extraction. 15 years later, these companies still proudly embrace Moneyball, holding conferences with Billy Beane, talking up data, and boasting about proprietary algorithms - even as their products get worse and customers tune out.

For them, profit is no longer the reward for a good product; it is the sole objective and only purpose for a product’s existence. In this Modern MBA episode, we dive into the economics of shrinkflation and how this all accelerated with Moneyball in 2010 through the lens of the biggest consumer conglomerates in the world.

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