With confectionery makers in the spotlight over post-Brexit ‘shrinkflation’, Nestlé has pledged to do what it can to avoid changes to its product lines – in spite of pressure on fmcg suppliers to reduce costs in the face of food inflation.
Although the supplier has made some pack size reductions in recent times, with Kit Kat Chunky dropping from 48g to 40g in late 2014, it suggested it would not implement further cuts in the wake of the Brexit vote, as prices have come under pressure over the devaluation of sterling.
Nestlé was “used to dealing with all of the variables that could affect our cost pricing, including fluctuations in currency”, said a spokeswoman.
“We constantly review those costs and we will continue to manage all of these factors with a view to making cost price increases only when absolutely necessary,” she added. She would not comment on whether the company had considered reformulation or product delistings as money-saving measures.
The vow came after other chocolate confectionery suppliers drew criticism for ‘shrinkflation’ measures – pack reductions without corresponding price cuts – as the category held steady at £3,668.2m in value sales as the result of innovation and shrewd marketing [Nielsen 52 w/e 10 September 2016].
Mondelez announced earlier this month it had changed the weight of two bars in Toblerone’s UK portfolio in an effort to maintain retail prices, adding extra space between the chunks to cut the 400g SKU to 360g, and the 170g to 150g.
Last week, pouches of Maltesers and Galaxy Counters were found to have lost weight, with the former product having dropped from 135g to 121g and the latter from 126g to 112g.
Mars said the decision had been “difficult” but was necessary to allow consumers to “continue to enjoy an affordable treat”.
1 Readers' comment