Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
HBAF, CJ, Mondelez, Pulmuone accused of resorting to 'shrinkflation'
Consumers shop for processed foods at a supermarket in Seoul in this November file photo. Yonhap
By Park Jae-hyuk
HBAF, CJ CheilJedang, Mondelez International, Pulmuone and several other food makers were found to have refrained from hiking product prices this year, but reduced the volume of their contents, which is a practice called “shrinkflation” that is frowned upon by customers, the Korea Consumer Agency said Wednesday.
The term is a portmanteau of shrink and inflation.
After inspecting 209 processed food products listed on the database of daily necessities whose prices are monitored by the government, the agency found out that each package of HBAF’s almond snacks became 7.7 to 9.5 percent smaller in weight. CJ CheilJedang also decreased the weight of its sausages by 12.5 percent, while Seoul Dairy Cooperative reduced the size of cheddar cheese per package by 10 percent.
Among them, HBAF informed consumers of the downsizing through its official website.
The agency also inspected companies suspected by consumers of having reduced the size of their products. As a result, it was revealed that Mondelez reduced the weight of each package of Halls cough drops by 17.9 percent and that Yonsei University Dairy decreased the content of each pack of milk by 10 percent. The university dairy announced the volume reduction on its official website.
Among the food firms mentioned in news reports on shrinkflation, Dongwon F&B, Haitai Foods, Oriental Brewery and Pulmuone were found to have reduced the quantity of their products.
“Some manufacturers admitted the size reduction, but they claimed that their products were renewed with new packages and different recipes,” the agency said.
Deputy Prime Minister and Finance Minister Choo Kyung-ho also discussed this issue during a ministerial meeting on Wednesday.
“The government will force online sellers to show unit prices, so that consumers can compare product prices more easily,” he said.
The Fair Trade Commission also decided to force companies to inform consumers of changes in quantity and ingredients on product packages or their websites.