Cadbury, the renowned chocolate manufacturer, has implemented a controversial price increase on its Creme Eggs, coupled with a reduction in the number of eggs per multipack, effectively doubling the price per egg. Previously, Cadbury offered 10-packs of Creme Eggs, with promotional prices as low as £3 at Tesco with a Clubcard. However, the new 8-packs are priced at £5.50, or £4.75 with a Clubcard, representing a significant increase per egg. This translates to a per-egg cost of 59p with a loyalty card, compared to the previous promotional price of 30p, a near 100% increase. Consumers have expressed outrage over this “shrinkflation” tactic, recalling a similar reduction from 6-packs to 5-packs in 2015. Cadbury’s parent company, Mondelez International, attributes these changes to rising supply chain costs, claiming product size adjustments are a last resort.
This incident follows another recent price hike that impacted Cadbury Mini Eggs, where the cost of a small bag increased by over a third compared to last year. These rising costs are linked to a surge in cocoa prices, which have more than quadrupled in the past two years, reaching $10,642 per tonne, a 132% year-on-year increase. This price escalation transforms Creme Eggs from an affordable treat to a more considered purchase, potentially impacting impulse buys, a key sales driver for confectionery companies like Mondelez. Analysts suggest that consumers are becoming more price-sensitive, scrutinizing their spending on discretionary items like chocolate.
Cadbury has faced criticism for shrinkflation tactics in the past, reducing the size of family-sized chocolate packs while maintaining the original price point. For example, the weight of family packs decreased from 216g to 207g, while the price remained around £3 for 14 treats. This practice, known as shrinkflation, involves reducing product size or quantity while keeping the price constant, or even increasing it. This strategy allows manufacturers to offset rising costs without directly raising prices, a move consumers might find more palatable than an outright price increase. However, it effectively reduces the value consumers receive for their money.
Another related tactic is “skimpflation,” which involves altering a product’s recipe to reduce production costs without necessarily changing the price or size. This can involve using lower-quality ingredients or reducing the proportion of expensive components. Both shrinkflation and skimpflation are responses to rising production costs, allowing manufacturers to maintain profit margins without alienating price-sensitive consumers. These practices often go unnoticed by consumers, making them a preferred strategy for manufacturers compared to more visible price increases.
Navigating the best deals on Easter eggs can be challenging due to the variety of multipack options and loyalty card offers. Experts recommend comparing the price per 100g, indicated in the small print under the price tag, to determine the most cost-effective option. Supermarket loyalty cards often offer exclusive discounts, and adding them to digital wallets eliminates the need to carry multiple physical cards. Planning Easter egg purchases in advance and scouting for deals across different supermarkets allows consumers to spread the cost and secure the best value.
Several strategies can help consumers save money on chocolate purchases. Opting for supermarket own-brand chocolates often provides a more affordable alternative to branded products without compromising significantly on taste. Comparing prices across different retailers, using online price comparison websites, can ensure you are getting the best deal. Checking for yellow stickers, which indicate reduced-price items nearing their best-before date or with slightly damaged packaging, can yield significant savings. Finally, buying larger chocolate bars often offers better value per 100g, provided you can consume the larger quantity.
