‘Skimpflation’ Could Be the Sneakiest Consumer Grift

Summary

Big Take: "Think Your Candy Tastes Different? You’re Not Wrong" (July 30, 2026)

Podcast: Big Take (Bloomberg & iHeartPodcasts)
Host: Stacey Vanek Smith
Theme: How companies are quietly tweaking the recipes of beloved foods, often at the expense of taste and consumer trust, and what consumers can do about it.

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Overview

This episode investigates why your favorite candies and snacks might not taste the same anymore, focusing on the rise of "skimpflation"—when brands swap out premium ingredients for cheaper substitutes. Host Stacey Vanek Smith explores the cost pressures driving these changes, the consumer backlash, and the industry strategies behind it. The show features insights from consumer watchdogs, food industry insiders, and everyday fans who have noticed the difference.

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Key Discussion Points & Insights

The Candy Doesn't Taste the Same

• Brad Reese's Experience:
  Brad Reese, grandson of Reese's inventor H.B. Reese, discusses his lifelong love of Reese's Peanut Butter Cups and how he's noticed a change in taste over the years.

  • Quote: “And I said something’s not right.” (03:35)
  • Memorable Note: Sometimes wears a Reese’s racing jacket, likening the attention to "being a celebrity but without the hassle." (02:58)

• Corporate Recipe Changes:
  Reese’s, now owned by Hershey, and many other brands are suspected of quietly reformulating products to use less expensive ingredients, often without public acknowledgment.

• Skimpflation & Shrinkflation:

  • Shrinkflation is when companies sell less product for the same price.
  • Skimpflation (term coined by NPR’s Greg Rosalsky): swapping higher-quality for cheaper ingredients.

• Example:

  • Heart-shaped Reese’s during Valentine’s were labeled “chocolate candy and peanut butter creme” instead of chocolate and peanut butter.
  • Quote (Brad Reese): “I literally had two bites and I had to spit it out.” (08:34)

---

Industry Context & Pressures

• Economic Pressures (05:57):

  • "Americans are paying about 32% more for their groceries than they were before the pandemic...companies are paying over 45% more for their ingredients." — Stacey Vanek Smith
  • Results in both price increases and changes to recipes.

• Consumer Watchdog Perspective:

  • Edgar Dworsky (Consumerworld.org):
    • “Manufacturers forever have fiddled with...formulas of their products. Has it always been for the good? ... Maybe as costs go up, it hasn’t been.” (04:07)
    • “Consumers aren’t in the habit of memorizing the ingredients list...you can’t assume that anymore.” (04:35)
  • Nabisco's "chocolatey" cookies and Entenmann’s "chocolatey" muffins illustrate “chocolate” knock-offs proliferating (08:59-09:13).

• FDA Definitions:

  • To label something as "chocolate," the FDA requires at least 15% cacao.
  • "Peanut butter" must be at least 90% peanuts.

---

The Recipe Swap—How It Happens

• Sensory Consultants:
  • Gail Vance Seville (Sensory Spectrum): Food companies work with experts to try to replicate signature tastes even with cheaper ingredients.
    • "You have to find...matching chemicals...to deliver the same type of roasted notes...chocolate essence, which has a nuttiness and a whininess to it." (10:51)
    • Companies spend years—and millions—to get new recipes as close as possible, with varying success.

---

Consumer Reaction & Backlash

• Brad Reese’s Open Letter:

  • Drew hundreds of responses.
    • Quote: “Thank you, thank you. I thought I was going nuts, I thought my taste buds were changing. Now you’ve confirmed it wasn’t me.” (14:35)

• Neal Chohan’s Campaign (Toronto-based marketer):

  • Noticed ice cream truck treats losing their signature gumball eyes, and began investigating, finding widespread product downgrades.
    • “I started digging into it and it turns out over years they went from the big bubble gum eyes to chocolatey chips.” (15:16)
  • Runs TikTok series exposing skimpflation, gets tips from store employees.
    • Quote: “It’s something that I think the average American needs to know about because times are tough ... This could be the reason.” (16:09)

• Biggest Complaint (Deception):

  • Chohan: “Where my issue lies is the deception behind it.” (16:41)
  • Journal of Consumer Research study—people care less about recipe swaps when companies are up front about the changes.

---

Companies Respond to Public Outcry

• Smart Balance Margarine Case:

  • ConAgra cut oil content, consumer backlash led to a reversion to original formula after “literally thousands” of complaints. (17:21-17:59)

• Legal Route:

  • German court ruled that companies must clearly notify consumers when shrinking products, even if net weight is listed. (18:10)
    • Quote (Edgar Dworsky): “There’s an expectation on consumers’ parts that if the product looks the same, it should be the same. The burden shouldn’t be on the consumer.” (18:10)

• Will the U.S. Follow?

  • Companies trumpet “20% more!” offers, but never admit “20% less!” (19:12)

---

The Limits of Consumer Knowledge

• Many products aren't protected by legal "identity" rules (e.g., seasoning on chips, oil in cakes, detergent concentration).
• Often, the only clue a product has changed is consumer memory.
• Hershey spokesperson says some Reese's and Hershey products will revert to classic recipes by 2027 due to feedback. (19:28-20:17)
  • Quote (Brad Reese): “And so now I'm wearing Reese's again.” (20:17)

---

Notable Quotes & Memorable Moments

• Brad Reese:
  • “Consumers are realizing the product is inferior. Now. It's eroding the trust, Reese's Trust, and they're never going to get it back.” (07:05)
• Edgar Dworsky (on labeling):
  • “Will we ever see in the United States look 20% less? I don't think bonus, right.” (19:12)
• Stacey Vanek Smith:
  • "Why does SpongeBob not have eyes?" (16:22)

---

Key Timestamps

| Time | Segment/Quote | |-----------|---------------------------------------------------------------------| | 02:18 | Reese’s family lineage and brand nostalgia | | 03:35 | Brad Reese detects a taste difference | | 04:07 | Edgar Dworsky on sneaky formulation changes | | 05:28 | Shrinkflation clips (Biden & Trump) | | 07:05 | Skimpflation erodes trust (Brad Reese) | | 08:59 | Example: Nabisco and Entenmann’s “chocolatey” substitutions | | 10:10 | Gail Vance Seville on replicating signature tastes | | 14:35 | Brad Reese’s open letter brings consumer testimonials | | 16:09 | Neal Chohan: “This could be the reason...” (awareness for consumers)| | 16:41 | Chohan: “...the deception behind it.” | | 17:21 | Smart Balance case—consumer outcry works | | 18:10 | German court ruling on clearer product shrinkage disclosure | | 19:28 | Hershey commits to restoring some classic recipes by 2027 | | 20:17 | Brad Reese: “And so now I'm wearing Reese's again.” |

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Conclusion

This episode sheds light on the hidden ways brands respond to inflation and cost pressure—often at the consumer’s expense. Not only are packages shrinking, but recipes are skimped, leaving fans dissatisfied and, increasingly, outspoken. As some companies and courts begin to respond to consumer pressure, the episode asks: Should it really be the customer’s job to notice when their treat isn’t what it used to be?

For more episodes and analysis, visit bloomberg.com/podcastoffer.

Transcript

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[Stacey Vanek Smith]

I read you've been eating peanut butter cups quite frequently since you were a kid.

[Brad Reese]

Oh yeah, I love them. I mean it's absolutely People say it's the crack cocaine of candy.

[Stacey Vanek Smith]

This is Brad Reese and if you haven't already guessed, he is a big fan of Reese's Peanut Butter Cups. But he is not just a fan.

[Brad Reese]

My dad was Charles Richard Reese, who was the youngest of the 16 children of HB Reese, the inventor of Reese's.

[Stacey Vanek Smith]

And Brad leans into that candy lineage hard sometimes. He wears a bright orange Reese's branded racing jacket in public and people notice.

[Brad Reese]

It's like being a celebrity but without the hassle of being a celebrity. And what I mean by that is I can turn the light switch on or turn the light switch off. How do I turn it on? I put something on that says Reese's.

[Stacey Vanek Smith]

Brad understands what makes a Reese's Peanut Butter cup special, too. That smooth chocolate taste, those little ridges that give way to the creamy peanut butter center. But lately Brad's relationship with the brand has gotten more complicated. Reese's was bought by Hershey back in 1963, and in the years since, Brad says he's found himself time and time again unwrapping a peanut butter cup, taking a bite.

[Brad Reese]

And I said something's not right.

[Stacey Vanek Smith]

But was Brad's hunch just a hunch? From chocolate bars to margarine, a lot of beloved brands have been quietly swapping out ingredients for less expensive substitutes as they grapple with surging costs. It's a practice NPR reporter Greg Rosalski calls scamflation. An anonymous survey of 300 large food and beverage brands showed that nearly two thirds of them reformulated at least six recipes. Probably a lot of products that used

[Brad Reese]

to have 100% olive oil or mostly

[Public.com Advertiser]

olive oil probably now have more of a blend.

[Edgar Dworsky]

I think manufacturers forever have fiddled with the formulas and formulations of their products. Has it always been for the good? You know, maybe as costs go up, it hasn't been.

[Stacey Vanek Smith]

That's Edgar Dwarki, a consumer advocate who runs the watchdog website consumerworld.org and he's been digging into the question who what happens when companies tinker with the recipes of their beloved consumer products to cut costs.

[Edgar Dworsky]

Consumers aren't in the habit of memorizing the ingredients list. You're making an assumption that it's still the same as what it was. But you can't assume that anymore.

[Stacey Vanek Smith]

I'm Stacey Vanek Smith in for David Gura and Sarah Holder. And this is the big take from Bloomberg News today on the show. Could skin inflation be the biggest consumer grift out there? And what happens when consumers notice the difference in their favorite products? When inflation is high, it puts pressure on both consumers and companies to find ways to cut costs. That has led to a couple of trends. One is called shrinkflation. That is when companies sell less of their product but charge a similar price. President Biden actually called out this practice in a video back in 2024.

[President Biden / President Trump (voice clips)]

It's a rip off.

[President Trump (voice clip)]

Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won't notice.

[President Biden / President Trump (voice clips)]

Give me a break.

[Stacey Vanek Smith]

President Trump made his own demonstration of the trend by holding up two different sizes of Tic Tac containers at a campaign rally that same year.

[President Trump (voice clip)]

This is inflation. This is Tic Tac. This is Tic Tac. This is inflation. This is what's happened.

[Stacey Vanek Smith]

The economic conditions companies are responding to when they make these shifts are pretty stark. Americans are paying about 32% more for their groceries than they were before the pandemic, according to government data. Companies are paying over 45% more for their ingredients and raw materials.

[Edgar Dworsky]

Chocolate has been very expensive and ground coffee.

[Stacey Vanek Smith]

So are there other products where you're seeing this kind of nipping and tucking?

[Edgar Dworsky]

There are very few categories where we haven't seen it.

[Stacey Vanek Smith]

Edgar Tworsky told me there are three ways companies tend to react in moments of high inflation. One is simply raising prices, but they

[Edgar Dworsky]

know consumers are price conscious and they're going to notice if the price has gone up.

[Stacey Vanek Smith]

Option two is shrinkflation, taking out a

[Edgar Dworsky]

little bit of the product contents from the package. Try to keep the package looking the same. So in essence, the consumer is getting less for their money. Or option three, they can try to cheapen the product in some way, use less expensive ingredients, and that's skimpflation.

[Brad Reese]

Consumers are realizing the product is inferior. Now. It's eroding the trust, Reese's Trust, and they're never going to get it back.

[Stacey Vanek Smith]

This week, a spokesperson for the Hershey company told us, quote, the core recipes for our Hershey's Chocolate bars and Reese's Peanut Butter cups have not changed. But for a while now, Brad has had a gut feeling about some of the products he's been tasting. He isn't formally affiliated with the company, but as one of the bearers of the Reese's family name, he has felt compelled to do some independent research.

[Brad Reese]

Now, have you ever noticed that in United States the Reese's peanut butter cups still say milk chocolate? Well, in Europe, they don't say that there is no milk chocolate on the wrapper.

[Stacey Vanek Smith]

But what can be called chocolate in the US can't necessarily be called chocolate everywhere else. So Reese's candy sold in the UK for example, are advertised as a combination of, quote, milk chocolate flavor and smooth, rich peanut butter. A Hershey spokesperson told us the company is, quote, continually reviewing our recipes to meet evolving tastes and preferences. End quote. And there are other products in the company's roster that lean on formulas with less of those core ingredients. Consumers have come to love a Reese's fast break Candy Bar contains 2% or less of chocolate and skim milk. And when Brad bought a bag of heart shaped Reese's around Valentine's Day, he noticed they weren't made of chocolate and peanut butter, but of, quote, chocolate candy and peanut butter creme.

[Brad Reese]

I literally had two bites and I had to spit it out.

[Stacey Vanek Smith]

Brad even stopped wearing his Reese's racing jacket. The US Food and Drug Administration has rules when it comes to product labeling. To say something is chocolate, at least 15% of it needs to come from an actual cacao bean. If the peanut butter isn't at least 90% peanuts, it might go by that peanut butter creme name.

[Edgar Dworsky]

The Nabisco cookies. The chunky cookie version now says chocolatey instead of real chocolate. And the little muffins from Entenmanns that used to have real chocolate chips, now they do chocolateies and ice cream, too.

[Stacey Vanek Smith]

I feel like I've seen this a lot in ice cream where it's called,

[Edgar Dworsky]

like, frozen frozen dairy dessert.

[Stacey Vanek Smith]

Yes.

[Edgar Dworsky]

Used to say ice cream on the package. Now either says light ice cream or says frozen dairy dessert. Because the FDA has, you know, standards of identity.

[Stacey Vanek Smith]

Bimbo Bakeries usa, whose parent company owns Entenmanns, says little bites have, quote, always been made with real chocolate. End quote. And that there was no change to its ingredients. The company added that after feedback from consumers, they decided to return to their original labeling, which is now rolling out to stores. The company that owns Nabisco did not respond to a request for comment.

[Gail Vance Seville]

Consumers can readily identify that certain things differ.

[Stacey Vanek Smith]

That is Gail Vance Seville. She runs a consulting firm called Sensory Spectrum. Companies approach her when they want to replace an ingredient in one of their products without making customers mad.

[Gail Vance Seville]

For example, the color. They only cared when they were out of spec, like a big range. Like, you couldn't believe how tolerant they were of the darkness to lightness of the color. They were like, yeah, still the same cracker. It's good.

[Stacey Vanek Smith]

Gayle is a trained chemist, so she is a pro at identifying the notes that a product needs to maintain its signature taste. At Century Spectrum's tasting lab in New Jersey, Gayle and her team will experiment with flavorings and chemicals, trying to best replicate a natural ingredient without disturbing the eater's experience. Certain replacements are harder to nail than others, like peanuts and chocolates.

[Gail Vance Seville]

You have to find some matching chemicals that are going to deliver the same type of roasted notes that have this caramelized character or this, what we call chocolate essence, which has a nuttiness and a whininess to it.

[Stacey Vanek Smith]

Gail told me. Companies can spend years and millions of dollars trying to nail their new recipes. And even still, sometimes consumers notice

[Gail Vance Seville]

after

[Stacey Vanek Smith]

the break what happens when they do.

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As

[Stacey Vanek Smith]

companies have been experimenting with using cheaper ingredients to cut costs on their products, consumers have noticed and taken action. Brad Reese, the grandson of Reese's Peanut Butter cup inventor H.B. reese, published an open letter on his LinkedIn addressed to a manager at Hershey. And that letter got a lot of attention.

[Brad Reese]

I've literally got hundreds and hundreds of letters, emails from people saying, thank you, thank you. I thought I was going nuts, you know, I thought my taste buds were changing. Now you've confirmed it wasn't me.

[Stacey Vanek Smith]

And it's not just Brad. For Toronto based social media marketer Neal Chohan, his crusade started with an ice

[Neal Chohan]

cream truck about three years ago in the summer, picking up a spongebob popsicle. It's one that I had as a kid. It was my favorite. It had these giant bubblegum eyes on the front, but I noticed mine was missing the gumball eyes.

[Stacey Vanek Smith]

Honest mistake. Neil thought not.

[Neal Chohan]

So I thought it was like a manufacturing error or something like that. But I started digging into it and it turns out over years they went from the big bubble gum eyes to chocolatey chips.

[Stacey Vanek Smith]

Now that Neil was looking, he started noticing similar product changes everywhere. It was like he had opened a skimflation Pandora's box. It made him so upset, he started posting a series on his TikTok account, shaming companies from Oreo filling that he says did not reach the edge of the cookie. To Pringles chips, he says that were getting smaller. A spokesperson for Mars, which owns Pringles, said, quote, we have not reduced the size of Pringles in the US the dimensions of the crisp, the may vary slightly due to manufacturing factors, but we deliver the stated net weight, end quote. The company that owns Oreo did not reply to a request for comment.

[Neal Chohan]

It's something that I think the average American needs to know about because times are tough and they might be going crazy wondering, why is my money not stretching as far as it used to? This could be the reason.

[Stacey Vanek Smith]

Why does SpongeBob not have eyes?

[Neal Chohan]

Exactly. You know what? That might be the headline.

[Stacey Vanek Smith]

Nowadays, Neil gets tips from grocery store and drugstore employees who point out discrepancies they notice, too. He says his problem is not that the companies are changing their products, it's that as far as he sees it, they're pretending they haven't.

[Neal Chohan]

I understand the nuance. There's raw material costs that are going up. Labor is more expensive. I understand why brands aren't making as much profit as they used to if they kept everything the same. I get that where my issue lies is the deception behind it.

[Stacey Vanek Smith]

An academic study published in July in the Journal of Consumer Research found that consumers are more bothered by skimflation than shrinkflation. But if companies disclose the changes they've made, consumer reactions are significantly reduced. There have been cases of companies bowing to public pressure and backtracking on their skimflation changes.

[Edgar Dworsky]

Smart Balance margarine used to be 64% oil and the rest basically water. They changed the formulation and they lowered the amount of oil content to 39% a few years ago. But consumers noticed. And when you went to the ConAgra website for smart Balance, there were literally thousands of consumer complaints. This used to be terrific. It tasted, you know, buttery tasting and rich and they changed back, which was really amazing.

[Stacey Vanek Smith]

Other than public shaming, Edgar says there is a more formal route to force companies hands and that could come from the courts. That's starting to move the needle in some other countries when it comes to shrinkflation.

[Edgar Dworsky]

There was just a decision in Germany where Mondelez, which is, you know, a big consumer products baker, they have a chocolate bar in Europe that went from 100 grams to 90 grams, but the package looked the same. Of course it had, you know, the net weight was, was showing. But the court said there's an expectation on consumers parts that if the product looks the same, it should be the same. The burden shouldn't be on the consumer to have to check the fine print every time you buy it. And they basically said that Mondelez in the future has to put a notice right on the packages for four months when they lower the contents.

[Stacey Vanek Smith]

If companies had to advertise these sorts of changes the same way they market other new and improved products, Edgar thinks it could go a long way.

[Edgar Dworsky]

You always see product manufacturers say when they give you extra, you know, bonus pack, look 20% more. Will we ever see in the United States look 20% less? I don't think bonus, right.

[Stacey Vanek Smith]

But even the most vigilant consumer can't catch every change a company might make. While there are rules food companies have to follow when calling something chocolate or ice cream or orange juice, many products don't have those rules. If a company wants to put less seasoning on its potato chips, use lower quality oil in its cake recipe or water down its detergent, the only hint we might have is our own memory of how something used to be, how satisfying that crunch was, or how good a product was at getting stains out of our shirts. As for the suite of newer Reese's products using ingredients Brad hated, he it looks like things will be changing. A spokesperson told us the company will be, quote, bringing a small portion of remaining Hershey's and Reese's products in line with their classic milk and dark chocolate recipes in 2027.

[Brad Reese]

And so now I'm wearing Reese's again.

[Stacey Vanek Smith]

That's right, he's back to rocking his Reese's racing jacket in public. This is the Big Take from Bloomberg News. I'm Stacey Vanek Smith in for David Gura and Sarah Holder. To get more from the Big Take and unlimited access to all of bloomberg.com, subscribe [e-mail] podcastoffer if you liked this episode, make sure to follow and review The Big Take wherever you listen to your podcasts helps people find the show. And thank you for listening. We'll be back tomorrow.

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