A customer looking for blueberry bagels found ‘Imitation’ blueberry bagels. Global News


December 27, 2023

Consumer analysts are cautioning customers about a new concern alongside food inflation and shrinkflation: skimpflation. Skimpflation occurs when manufacturers opt to reformulate products, usually by substituting cheaper ingredients, according to consumer watchdog Edgar Dworsky.

Dworsky, known for analyzing food products in the United States, shared his findings on Consumer World, noting instances where certain items like salad dressing and margarine reduced the amount of oil and compensated by adding water and salt. This practice joins the array of strategies employed by companies to manage costs, including raising stock prices, reducing product size, or offering less quantity.

Attributing skimpflation to rising costs of raw materials, labor, and transportation, Dworsky suggests that manufacturers, pressed by inflation, resort to using less expensive ingredients to cut costs. This shift is, however, challenging for consumers to detect since product recipes and formulas are not disclosed to the public.

An example of skimpflation was observed in Edmonton, where Costco blueberry bagels were found not to contain any actual blueberries. The ingredients listed included flour, water, sugar, and "imitation-blueberries," which comprised sugar, corn syrup, corn cereal, cornstarch, palm oil, artificial flavor, and three food colorings.

Sylvain Charlebois, the director of Dalhousie University's agri-food analytics labs, notes that skimpflation has been ongoing for several years, but advances in technology have enabled consumers to catch a few cases. Charlebois emphasizes the difficulty companies face in getting away with skimpflation due to increased consumer awareness through social media.

As an example, Charlebois mentions Quaker's Dipps granola bar brand, which replaced milk chocolate with a 'chocolatey coating' using palm oil and modified milk ingredients, citing the rising costs of cocoa.

Shoppers, unaware that manufacturers may be altering ingredients, express concern about the lack of transparency. Some pledge to pay closer attention during their next grocery run, highlighting the importance of reading ingredient labels, particularly with health considerations.

Charlebois predicts that skimpflation cases may rise with the implementation of a new nutrition law. Starting January 1, 2026, products with high levels of sodium, fat, or sugar will be required to include a label, prompting companies to reformulate products to avoid negative labeling. However, Charlebois notes that this could lead companies to replace expensive ingredients with cheaper alternatives, continuing the trend of skimpflation.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

Toys 'R' Us Canada Closing 5 Ontario Stores, to Revamp & Expand HMV

Toys "R" Us Canada has announced the closure of five stores across Ontario and plans to revamp several others as....

Canada's Top 100 CEOs Raked in $13.2M on Average in 2023

In 2023, Canada's 100 highest-paid CEOs received an average of $13.2 million, including salaries, bonuses, and other forms of compensation,....

New Year Brings Home-Flipping Tax and Income Rebate to B.C.

VICTORIA — British Columbia is ringing in 2025 with new regulations, including a maximum 20% home-flipping tax, as part of....

Mortgage Rates End Year at 6.85%, Right Where They Began

Mortgage costs remained stubbornly high throughout 2024, with 30-year fixed rates consistently exceeding 6%. Unfortunately for hopeful homebuyers, 2025 doesn’t....

Boxing Day Shoppers Rush for Deals with GST Tax Break

On Boxing Day, many shoppers headed to malls across Canada, eager to grab post-holiday deals made even more attractive by....

American Airlines Grounds Flights, Disrupting Holiday Travel

American Airlines Grounds Flights NationwideOn a bustling Tuesday morning, American Airlines abruptly grounded all flights across the U.S. due to....

Honda and Nissan plan a merger to form the third-largest automaker

In a major move, Japanese car manufacturers Honda and Nissan have announced their plan to merge, aiming to become the....

Rogers Sued for Misleading Ads on "Unlimited Data" Plans

Canada's Competition Bureau is taking legal action against Rogers Communications Inc., accusing the company of misleading customers about its phone....

Unifor Approves Four-Year Agreement with CN Rail, Avoids Strike

Unifor members working at Canadian National Railway (CN Rail) have voted to approve a new four-year agreement, ensuring the avoidance....

Canadian Home Affordability Improves, Remains A Challenge For Many

Home affordability in Canada is beginning to show signs of recovery, according to a new report by RBC Economics. For....

Party City Shuts U.S. Stores, Remains Open In Canadian Locations

All Party City stores in the United States are set to close permanently, but the brand's Canadian operations will not....

Nissan and Honda Discuss Closer Ties, No Merger Decision Yet

Japanese automakers Nissan Motor Corp. and Honda Motor Co. confirmed on Wednesday that they are exploring opportunities for deeper collaboration,....