One of Britain’s favourite chocolate bars has become the latest victim of shrinkflation.
The family-sized Dairy Milk bar is the latest item to feel the pinch after Cadbury announced yesterday that it is reducing the size of the much-loved chocolate by 10% but will not be amending the price at the tills.
The bars will remain at £2 despite its significant decrease in size.
Parent company Mondelez blamed an increase in production costs for the shrinking of its larger bars from 200g to 180g.
Mondelez also said it was the first example of so-called shrinkflation at the UK chocolate brand for a decade.
American economist and former advisor to George W. Bush, Pippa Malmgren, is believed to have coined the word to describe when a product is reduced in size but sold at the same or a higher price point, meaning that the customer is losing out by paying more money for less product.
It comes at a time when Britons are set to face the cost-of living-crisis, with rising inflation and increases in taxes, bills, and food is set to leave millions worse off this year.
A spokesperson for Mondelez, 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.”
Shrinkflation is not new, but due to the perfect amalgamation of rising inflation, labour shortages, complications in the supply chain, and post-pandemic demand that means more products are getting smaller but remaining the same price.
In October, Walkers cut two bags of crisps from its multipacks, from 24 to 22 but kept the price at £3.50.
Last week, Consumer Price Index (CPI) inflation struck a new 30-year-high of 6.2% for February and is expected to soar beyond 8% in the coming months.
The figures for February showed that food inflation increased by 5.3% year-on-year, with milk, fresh meat and coffee reporting particular sharp increases.