Kerrygold Butter Shrinkflation: Price Increase Explained

Shrinkflation and Price Hikes Hit Beloved Chocolate Brands

This article details how several popular chocolate brands are responding to rising costs, particularly those related to cocoa, through a combination of shrinkflation (reducing product size while maintaining or increasing price) and direct price increases.

Here’s a breakdown of the changes:

* Quality Street: Reduced from 780g to 600g,with prices varying by retailer.
* Kerrygold: 550g tub cheaper than the 600g tub was last year (Asda).
* Cadbury Roses: Reduced from 750g to 700g, with a price increase from £14 to £16.50 (Morrisons).
* Terry’s Chocolate Orange: Reduced by 7.6% in size, with price hikes of 33% (Tesco), 28.2% (Sainsbury’s), and 25% (Morrisons).
* Toblerone: Reduced from 360g to 340g, with increased costs in Morrisons and Sainsburys.

Reasons for the Changes:

* Cost Pressures: Companies cite rising costs of manufacturing, ingredients (especially cocoa), and transport.
* Cocoa Crisis: A report from Christian Aid highlights that rising temperatures and erratic rainfall in West Africa (Ghana, Côte d’Ivoire, Cameroon, and nigeria – which produce 70% of the world’s cocoa) have severely impacted cocoa harvests.Cocoa prices have risen 400% to $12,218 (£9,800) per ton.
* Climate Change: Climate change is identified as a major driver of the cocoa crisis, disrupting growing conditions and threatening the livelihoods of cocoa farmers.

Company Responses:

* nestlé (Quality Street): Claims pricing is competitive and offers good variety. Final prices are set by retailers.
* Toblerone & Cadbury: State changes were a “last resort.”

The article emphasizes that these changes are a direct result of global factors impacting the cocoa supply chain, and are affecting the cost and size of beloved chocolate treats.