Cadbury Cuts Size of Chocolate Bars to Keep Costs Low
Cadbury has recently made a strategic decision to reduce the size of some of its popular chocolate bars in an effort to manage costs. The Brunch bars, which are typically sold in packs of five, have undergone a 12.5% reduction in weight – from 32g each to 28g each. Despite this decrease, the price of the multipacks remains unchanged at £1.35. Specifically, the packs of Raisin, Peanut, Choc Chip, and Bournville Choc Chip treats will now contain the smaller bars.
In a move known as shrinkflation, where product sizes are reduced while prices remain steady, Cadbury aims to mitigate the impact of rising production expenses. The company’s spokesperson mentioned that Mondelez, the owner of Cadbury, has adjusted the recommended retail prices and implemented slight weight reductions across their core Brunch Bars. This adjustment comes as a response to the significantly increased costs of essential ingredients like cocoa and sugar in the supply chain.
Shoppers have become increasingly aware of shrinkflation in various products, with research showing that 80% of consumers have noticed this phenomenon occurring more than once. For instance, certain brands of digestives have shrunk by 28% since 2014, yet their prices have surged by 129%, making them one of the most affected items. Other products, such as crisp multipacks and breakfast cereals, have also seen reductions in contents by up to 17% and 24%, respectively, while maintaining the same prices.
Despite these changes, manufacturers emphasize that pricing decisions ultimately lie with retailers. It’s notable that while some products are shrinking in size, their prices are holding steady, illustrating the delicate balance between managing production expenses and customer expectations in a competitive market.