Cadbury shrinks Dairy Milk bars for the first time in a decade amid inflated production costs
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Cadbury’s UK operations have confirmed that for the first time in a decade, it is reducing the size of its medium Dairy Milk bars, amid rising production costs and inflationary pressures, reports Neill Barston.
The ‘shrinkflation’ move, which will see 200g sharing lines reduced in size by 10% to 180g, reportedly with no change in present prices (at around £2), comes as food producers across the sector face increased ingredients costs as Britain’s economy comes under renewed pressures.
As previously covered by Confectionery Production, a combination of factors including the cost of the Covid-19 pandemic, post Brexit trading complexities relating to trade of all kinds with Europe, and the conflict between Russia and Ukraine over the past month with the region being a major source of wheat and grain, as well as energy, have all proved to be major disruptive impacts.
The Dairy Milk series of bars has previously emerged as being among the world’s favourite chocolate confectionery lines, with consumers drawn to its smooth taste, resulting in key sales for the business around the world.
The concept of shrinkflation has affected the food sector for many years – with confectionery seeing a number of instances from key manufacturers of the size of products being cut, with no accompanying drop in prices noticed by consumers. The manufacturing trend has led to some shoppers venting their frustration on social media about reducing portion sizes.
US-based Mondelez, owner of Cadbury, has previously shrunk the size of a number of its lines, including Twirls, Crunchies and Wispas two years ago, which the business said was being done as a means of reducing calorie intake, amid growing consumer health concerns.
A statement from the company said: “We’re facing the same challenges that so many other food companies have already reported when it comes to significantly increased production costs – whether it’s ingredients, energy or packaging – and rising inflation. This means that our products are much more expensive to make.
“We understand that consumers are faced with rising costs too, which is why we look to absorb costs wherever we can, but, in this difficult environment, we’ve had to make the decision to slightly reduce the weight of our medium Cadbury Dairy Milk bars for the first time since 2012, so that we can keep them competitive and ensure the great taste and quality our fans enjoy.”
