Nutella becomes latest range to experience ‘shrinkflation’ amid rising ingredient costs
Nutella has become the latest confectionery product to be subject to claims of ‘shrinkflation’ of reducing portion size, as its popular 400g jars have been cut to 350g in the UK, writes Neill Barston.
According to its manufacturer Ferrero, the move, which will see no corresponding retail price reduction, also reportedly affects customers in Belgium, and is down to rising prices the business is experiencing moving into 2021.
The company is understood to be supplied with Turkish hazelnuts a key ingredient of its globally-popular spread, but as Mintec research noted last August, the country’s president, Recep Tayyip Erdogan confirmed last summer that the TMO (Turkish Grain Board) purchasing prices for the nut crop 2020/21 season would increase.
Consequently, Giresun quality hazelnuts were priced at TRY 22.5 per kg, up from TRY 17 per kg last year, while Levant quality hazelnuts cost TRY 22 per kg, up from TRY 16.5 per kg.
The phenomenon of shrinkflation, in which consumers effectively experience less product for their money has been experienced within a number of ranges from major manufacturers in recent years.
Figures from the UK’s Office for National Statistics found in 2019, a total of 209 food products became smaller with the same price tag, while 79 items were found to have increased in size that year. Notable confectionery cases include Toblerone’s ‘stretched peaks’ four years ago, a reduction in size of Maltesers by Mars and Jaffa Cakes reportedly now being around 10% lighter.
Speaking to Confectionery Production about the decision to reduce Nutella jar sizes for UK shoppers, a spokesperson for Ferrero’s British operations said: “In common with many other manufacturers, the costs in relation to our products has risen. We have made a change to our Nutella 400g jar which will now be available as a 350g.
“This change enables us to still provide our consumers the highest quality, taste and freshness of a favourite product without increasing the unit price.”