Cadbury reduces chocolate bar sizes amid rising costs

Cadbury has recently implemented a reduction in the size of some of its popular chocolate bars as part of a strategy to manage rising costs. The Brunch bars, which are sold in multipacks of five, have seen their weight decrease from 32g to 28g, marking a 12.5% reduction. Despite this change, the price of the multipacks remains unchanged at £1.35. This decision reflects the ongoing challenges faced by the company due to significantly higher input costs for ingredients like cocoa and sugar. The spokesperson for Mondelez, Cadbury's parent company, indicated that these adjustments were made after careful consideration of the recommended retail price alongside minor weight reductions. The company is experiencing increased costs across its supply chain, prompting the need for such measures. Interestingly, while the Brunch Light multipacks have not been reduced in size, their price has increased by 10p, highlighting the broader trend of price adjustments in response to market pressures. This phenomenon, known as shrinkflation, has become increasingly common, with many consumers noticing that products are shrinking in size while prices remain stable. Research from Barclays reveals that a significant majority of shoppers have observed this trend, with over a quarter reporting frequent instances of product size reductions. Other products, such as digestive biscuits and breakfast cereals, have also experienced similar shrinkage, indicating a widespread issue across various food categories. As manufacturers navigate these challenges, they emphasize that it is ultimately up to retailers to determine the final prices for consumers. This situation underscores the ongoing economic pressures affecting both producers and shoppers in the current market landscape.