"Oh, It's Not 100%" Juice and Concentrate Content Reduced by 'Skimflation'

Alternative Measures Instead of Price Increase Amid Rising Raw Material Costs
Substitution with Cheaper Ingredients or Weight Adjustment

The food industry is experiencing ongoing 'skimpflation.' This term is a combination of 'skimp,' meaning to save stingily, and 'inflation,' referring to companies reducing the costs spent on ingredients or services.

Compared to 'shrinkflation'?which means reducing weight or quantity, a blend of 'shrink' and 'inflation'?skimpflation is harder for consumers to notice because it involves a decline in the quality of products or services. Therefore, skimpflation is also called 'the most cunning inflation.'

Reduction in Fruit and Oil Content... Consumers Unaware of 'Cunning Inflation'

[Image source=Pixabay]

According to the industry on the 16th, Lotte Chilsung Beverage reduced the fruit juice content in Del Monte orange juice this year as the price of orange juice concentrate rose.

The juice content in the 100% orange product was reduced to 80%. However, since the phrase '100% Orange' appears first and '80% based on orange juice concentrate' is indicated at the bottom of the product, some consumers complained that it was difficult to understand the actual content of the product.

BBQ, which had long emphasized using '100% extra virgin olive oil,' has been using 'blended oil' since last month. This oil is a mixture of 50% olive oil and 50% sunflower oil, which is cheaper than olive oil. At that time, BBQ announced this change and explained, "This unavoidable decision was made to freeze consumer prices amid olive oil prices rising more than threefold."

Additionally, as food ingredient prices rise, the number of basic side dishes provided at restaurants has decreased, or they have been replaced with side dishes made from cheaper ingredients.

Service quality received by consumers has also declined due to labor reductions. A typical example is the introduction of kiosks for ordering at coffee shops and fast-food restaurants to reduce labor costs.

Moreover, there are concerns that, amid government demands for companies not to raise prices, many companies will increasingly reduce product sizes or lower quality by using cheaper ingredients to avoid government pressure and consumer resistance.

Problems Abroad Including Ingredient Substitution and Service Elimination

A citizen shopping at a convenience store in Gangnam-gu, Seoul. The photo is not directly related to the content of the article. [Image source=Yonhap News]

'Skimpflation' is a problem not only in Korea but also abroad.

According to Canadian media, 'Quaker' replaced the cocoa butter coating on its granola chocolate bars with cheaper palm oil.

UK supermarket chain Sainsbury's reduced the olive oil content in its olive spread from 21% to 10%. Another supermarket, Morrison's, adjusted the avocado content in its guacamole product from 80% to 77%.

Disneyland in the United States faced criticism for greedily pursuing profits after discontinuing the tram service that operated nearly 1 mile (1.6 km) from the parking lot to the entrance.

This content was produced with the assistance of AI translation services.