Cost substitutions trigger alarm from specialists: Premium components being swapped out raise concerns among industry experts.
In the face of escalating raw material prices, disrupted supply chains, and new legal requirements, manufacturers are making changes to their products, a practice known as Skimpflation. This phenomenon, which involves reducing the quality of a product while keeping the price the same, is causing concern among consumer advocates and regulators.
Skimpflation differs from Shrinkflation, where the size of a product is reduced without a corresponding change in price. Instead, food manufacturers are substituting premium ingredients with cheaper alternatives. For instance, the Ketchup of Kaufland's own brand KClassic now contains 72 percent single concentrated tomato paste, down from 73 percent double concentrated.
The German Food Association's managing director, Christoph Minhoff, defends these changes, stating they are a necessary reaction to the current economic climate. However, food experts like Armin Valet of VZHH argue that consumers are buying less quality for their money due to these practices.
The concern is that these quality declines are often subtle and not immediately obvious, making it hard for consumers to make informed decisions. Deceptive packaging practices also complicate matters, as not everyone saves old products or knows their original recipes, making it difficult to notice differences. Statements like "New Recipe" or "Improved Recipe" can be misleading and should prompt skepticism.
Consumer advocates are demanding clear and mandatory labeling of recipe changes to protect consumers and maintain trust in the food industry. The VZHH has published a list of affected products, including the "Favorite Nut-Nougat Cream" from Netto, where the hazelnut content has decreased, and the melting cheese "Milkana creamy light," which has decreased its cheese content but now contains butter and has a higher fat content.
However, not all manufacturers are transparent about their changes. Unilever, the food conglomerate behind the "Gourmet Lemon Butter Sauce," has not yet responded to a request for comment, and a request to the discount chain Netto remained unanswered.
The rise of Skimpflation highlights the tension between corporate cost-cutting strategies and consumer expectations for quality and honesty, especially in essential products like food. As transparency about ingredient quality and product size becomes a growing demand among shoppers focused on wellness and value, regulatory attention on these practices is also increasing.
Consumer centers are urging caution and vigilance against such practices. Valet warns that the actual number of affected products is likely to be significantly higher than the current list of 40 cases and urges customers to report any suspected cases. The call for transparency and honesty in the food industry is growing louder, as consumers demand to know exactly what they are buying.
Moving forward, it's crucial for regulatory bodies to establish clear community policies regarding product labeling and ingredient disclosure. This would help businesses adhere to ethical employment policies that prioritize maintaining product quality while navigating financial challenges. Failing to disclose changes in product quality could undermine consumer trust in the personal-finance implications of their purchasing decisions.
