CHOCOLATE fans across the UK have been issued an urgent warning about “skimpflation”.
As production costs soar, companies have been forced to turn this more subtle way of bringing down costs.
Inflation has hit chocolate sales hard and the market research firm Kantar UK and Ireland has uncovered some worrying trends in chocolate sales caused by this spike in inflation.
As prices rocket, shoppers have already begun switching away from treat-size snacks to season or multi-pack portions.
Inflation for seasonal pack sales has grown by 13 per cent and multi pack items have become 9 per cent more expensive, compared to the 24 per cent increase in treatsize snacks.
However, the increase in price has led to fears that shoppers may start to forgo chocolate permanently.
This has led chocolate manufacturers to attempt skimpflation tactics.
Skimpflation involves adjusting the mixture of ingredients to reduce the amount of the more expensive ingredients.
This could involve diluting the amount of chocolate used by introducing more nuts into the recipe.
Cadbury has been accused of leading the trend, after launching a range of filled chocolates in March 2024.
They have also announced a partnership with Biscoff which will launch in 2025.
However, this strategy can be risky as shoppers could be alienated by the brands they love.
There is the more obvious strategy known as shrinkflation, which sees brands reducing the size of their products while keeping prices the same.
This backfired for the beloved chocolate brand Toblerone in 2017, when their shrinkflation plan coincided with a 7 per cent drop in sales.
When they reversed the decision a year later, sales quickly recovered.
As supermarket prices continue to rise, shoppers have turned to dupes of their favourite chocolate treats.
M&S is selling a range of Chocolate Quail eggs, which weigh up to 235g and cost £10.
While an 80p packet of mini eggs will cost you £1.85 and a 270g packet comes in at just under a fiver, the M&S product gives you more bang for your buck if you’re looking to save some cash.
What is Skimpflation?
This is where the recipe for a food or drink item is changed to try and reduce production costs.
Despite the lowered production costs, shoppers still pay the same amount of money that they did before.
But shoppers still pay the same, or more.
It means shoppers won’t pay more when costs increase for the company making the item – but they will get less product.
Smaller products are easier for customers to digest compared to increasing prices, making it a popular option for manufacturers as it’s less noticeable.
Another tactic for businesses is “shrinkflation”.
This is where they reduce the size of their products, while keeping the buying cost level.
That means shoppers are buying less of the product for the same amount of money.
