Chocolate Prices Surge While Sizes Shrink for Christmas 2023

Christmas 2023 brings a bitter surprise for chocolate lovers in the UK, as popular brands reduce product sizes while increasing prices. Iconic festive treats like Quality Street, Terry’s Chocolate Orange, Toblerone, and Cadbury Roses have all seen notable changes, frustrating consumers eager to indulge during the holiday season. According to a report by The Grocer, these changes stem from escalating production costs driven by factors such as record cocoa prices and rising energy expenses.

A significant example of this trend is Quality Street, whose tubs have shrunk from 600g to 550g, marking a reduction of 8.3%. This change translates to fewer chocolates in each tub, dropping from approximately 63 to 57 pieces. Additionally, the price has risen by 16.7%, increasing from £6 to £7 across major retailers like Tesco, Sainsbury’s, and Morrisons. Asda offers the smaller tubs for £4.68, a lower price compared to last year’s larger offering.

The phenomenon known as “shrinkflation,” wherein product sizes decrease but prices remain unchanged or increase, has become a common source of frustration for shoppers. A spokesperson for the Food and Drink Federation explained that manufacturers are forced to make adjustments to product sizes to maintain affordability amidst rising costs.

Impact of Rising Production Costs

The recent price hikes are largely attributed to soaring cocoa costs, which have been influenced by poor harvests in West Africa due to adverse weather conditions and the spread of diseases affecting cacao plants. These challenges have been compounded by increases in energy prices and regulatory costs, placing additional pressure on manufacturers. Tom Church, co-founder of bargain-hunting site LatestDeals.co.uk, expressed his disappointment, stating, “The shrinking Quality Street tub has become a Christmas tradition. At this rate, the tub will quite literally be empty by 2035.”

In addition to Quality Street, Cadbury Roses has also reduced its tin size from 750g to 700g, a 6.7% decrease. Yet, the price has surged by 17.9%, rising from £14 to £16.50 at Morrisons. Last year, Asda offered the larger tins at a remarkable £5. The changes reflect a broader trend across the chocolate market, prompting consumers to reconsider their holiday purchases.

Other Brands Facing Similar Challenges

The downsizing extends to Terry’s Chocolate Orange, which has experienced a weight reduction of 7.6%, falling from 157g to 145g. At Tesco, the price has jumped by 33.3%, increasing from £1.50 to £2. Meanwhile, Sainsbury’s and Morrisons have raised their prices to £2.50. The brand’s introduction of a new caramel-flavored variant has sparked debate among chocolate enthusiasts, with mixed reactions to the change.

Toblerone has also faced scrutiny, with its large bars now weighing 5.6% less, dropping from 360g to 340g. Prices have increased significantly, with Morrisons selling the bars for £7, a 16.7% rise, and Sainsbury’s at £6.75, up by 12.5%. In a recent statement, Mondelez, the parent company of Cadbury and Toblerone, acknowledged the ongoing pressures from cocoa, dairy, and transport costs, emphasizing that such price increases are necessary.

As the festive season approaches, many consumers are left questioning how to navigate the rising costs of their favorite chocolates. Tips for saving money include opting for supermarket own-brand chocolates, exploring price comparison websites, and taking advantage of discounts on items nearing their best-before dates.

The chocolate industry’s challenges illustrate a broader issue of inflation and production costs affecting various sectors. For now, shoppers will need to adapt to smaller portions and higher prices as they indulge in holiday treats this year.