Pricing pressure
Well, it’s official. Gone are the days you can get a Freddo bar for 10p in the UK. Brand owner Mondelēz International is set to increase the price to 30p, blaming higher input costs.
The news comes just months after Mondelēz changed the shape of its Toblerone chocolate bar by widening the gaps between the triangles – must to the disgust of consumers, who resorted to social media to vent their anger.
In a statement, a spokesperson for Mondelēz said, “It is well reported that food and drink manufacturers have been experiencing increasing input costs for some time which, coupled with recent foreign exchange pressures, are making food products more expensive to make.”
Indeed, the price of cocoa, which Mondelēz imports into the UK, has grown by over 50% since 2013. “We have, and continue to, carry these increased costs within our business as much as possible, because our priority is to keep our brands as affordable as we can,” the statement added.
While increasing prices is a last resort, the spokesperson said, the company is “having to make some selective price increases with our customers in the UK.”
However, it added, “Importantly it is the retailer who ultimately sets the price on shelf.”
Mr Kipling owner Premier Foods is also preparing to increase the price retailers pay for its products. In a statement, the company said, “We take a blended approach to managing cost increases driven by currency and commodity factors. We look to manage our own efficiencies, adjust promotional mechanics and formats where appropriate and finally look at limited price increases where these can’t be avoided.”
The company added that the situation on pricing differs between its categories and brands and is currently under discussion with our individual retail customers. However, Premier Foods is considering increasing its products by “around the mid-single digit mark”.
It’s inevitable prices rise over time, but why does it have to be our childhood favourite?
