Reduflation and desqualiflation
Although these are practices that have existed for a long time, the year 2023 has highlighted two strategies in food processing. Consumers were not only concerned about rising food prices, but also annoyed by the food industry’s tactics to maintain prices while reducing quantities or changing ingredients. Reduflation occurs when food manufacturers and restaurants reduce quantities without reducing prices. Canada’s famous Kraft mac and cheese was the most well-known case this year, which upset many consumers.
Deskilling involves changing product ingredients to reduce costs, often replacing chocolate and cheese with artificial ingredients. Although the number of cases of re-duflation is expected to decrease due to lower commodity prices in 2024, more cases of des-qualiflation are expected in the future due to front-of-package labeling rules for sodium, sugar and fat, which are expected to be introduced in Canada by 2026.
High-level strikes in the food industry
When a labor dispute occurs in the food industry, it doesn’t take long for there to be an impact on consumers. Windsor Salt, Sobeys/IGA, Metro, Olymel, the Rogers Sugar plant in Vancouver, the St. Lawrence Seaway, the ports of British Columbia and Agropur, on two occasions, have been affected by labor disputes. Although the number of work stoppages in Canada has not been as high as in previous years, many strikes this year have been longer in duration, according to Employment and Social Development Canada. After years of decline, the labor movement appears to have gained more political capital and used it to its advantage this year. Interestingly, there was also an increase in members rejecting interim agreements, indicating that workers wanted their voices heard.
The campaign to denounce “excessive profits”
The subject of the year, undoubtedly. Throughout the year, Canadians were perplexed by the constant accusations of excessive profits, whatever that meant. Some politicians, interest groups and pundits have repeatedly used the theme of excessive profits as a distraction from more important economic issues, such as interprovincial barriers, carbon pricing and Bill C-234.
The Bank of Canada, the Competition Bureau of Canada, Dalhousie University and even the Parliamentary Committee have all stated that there is no evidence of abuse by brands in the food sector, but many Canadians remained skeptical. The politicization of food inflation in Canada this year has been marked by intense debate, often marred by personal attacks and accusations of bias from various sides. In contrast, within the industry, food manufacturers and grocers have blamed each other for rising food prices. This excessive profiteering campaign is probably the biggest non-scandal of the year, exacerbating the situation for Canadians.