Cadbury shrinks Dairy Milk citing rising costs

Cadbury has shrunk the size of Dairy Milk by 10 percent as widespread rising costs hit businesses globally – exacerbated by the effects of the war in Ukraine and sanctions against Russia.

Claiming the move will be the brand’s first attempt at shrinkflation in a decade,  parent firm Mondolez hinted that costs associated with the production of its chocolate are spiking, as it reduced the bars’ size from 200g to 180g, BBC reported.

 Despite the downsize, the chocolates will still typically being sold at £2.

“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,” a Mondelez spokesperson said.

“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.”

The news comes as shoppers grapple with a wider increase in the cost of living – largely driven by energy costs – that has seen fuel prices hit record highs and household gas and energy bills surge.

Consumer Price Index (CPI) inflation has increased to a new 30-year-high of 6.2 percent for February, and it is expected to soar beyond 8 percent in the coming months. Milk, fresh meat and coffee were among products showing the sharpest increases.

Mondelez’s move comes after several food and drink makers warned that food prices in the country are set to rise. 

Earlier, 2 Sisters Food Group CEO Ronald Kers has warned that food inflation may rocket to 15 percent by mid-year and the UK will witness hyperinflation unseen for five decades. 

The Food and Drink Federation has also warned that Russia’s invasion on Ukraine and subsequent trade restrictions and supply chain disruption will lead to food price rise and a possibility of temporary shortage.