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Jupiter said..I am not familiar with the internal working process on packaging. So you could be right about that. However, if what you said is right, shouldn't and wouldn't Milo simply give the buggers a good solid fair dinkum shake to make them settle down first ?
Being ever a cynical bastard, I have always thought that using a larger tin made buyers believe they are getting more

It's more difficult than you think.
Nestle probably has(had?) 20 plus sites around the that manufacture Milo. As Milo is a fairly old product line, the manufacturing lines are old mechanical automation. These are made to suit one size, and take a lot of time, effort and tooling costs to change to a new size, multiplied by all the sites around the world - as they want the same product look globally, it would be a very hefty bill.
These production lines may also be used to fill another products that Nestle makes, and they may need the full volume of the can.
Manufacturing globally has moved to more centralised manufacturing, closing more regional sites and replacing them with mega sites running at high speeds, computer controlled with robotics etc - some of these lines now change from size/product at the press of a button. This now gives them more flexibility for the packaging used.
I don't like the overuse of packaging especially plastic - all the crap plastic wrap vegies - comes from the consumer to a big degree.
At self service the consumer can't be trusted to enter strawberries at $10/kg, they enter carrots at $2/kg. So the supermarkets wrap it and barcode it, so you can't steal.
Consumers are all so "busy" now they don't like queuing at normal checkouts - if most vegies are barcoded it is quicker than finding all the individual products and weighing them.