US parent Mondelez blames higher production costs and inflation as 200g bar shrunk to 180g

Cadbury has slashed the size of its family-size bars of Dairy Milk by 10% as the nation’s favourite chocolate falls prey to “shrinkflation”.

The confectionery company has announced it is passing on rapidly rising production costs to customers, with US-based parent company Mondelez blaming inflation.

The reduction in weight, from 200g to 180g, comes as the UK faces the worst cost-of-living crisis in 30 years.

With inflation soaring to 6.2% last month, Cadbury is the latest company to shrink a product’s size while maintaining the same price in order to offset rising costs.

Mondelez said this was the first time in a decade that they had shrunk a Dairy Milk. In 2012, a 49g bar was reduced to 45g but the price remained 59p, while the 140g chocolate bar was reduced in size to 120g a year earlier.

“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.

“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.”

It 2015, to much dismay, Cadbury announced a reduction in its Creme Egg packs from six to five, with only a 20p price reduction.

Amid soaring energy prices, fuel bills and food costs, the move is the latest example of manufacturers scrambling against significantly increased production costs, with consumer price index (CPI) inflation forecast to hit 8% in April.

Recent examples include Walkers multipacks with fewer bags of crisps, Persil customers getting fewer washes from powder in a box, and Tesco cutting the weight of its mozzarella cheese.

While inflation soars to new levels, the tactic is far from new. According to the Office for National Statistics, 206 products shrank in size between September 2015 and June 2017 – the majority of which were food products.

For confectionary lovers, the camouflage tactic is particularly noticeable near festive holidays as manufacturers devise new ways to present their goods. In the past, consumers noted paying more for fewer confectionaries from Marks & Spencer and Mars Wrigley near Christmas.