• Shrinkflation - whereby a product’s size is reduced to maintain its price - is slipping into British stores. Cadbury has reduced the size of its Dairy Milk chocolate bars by 10 per cent. Getty Images
    Shrinkflation - whereby a product’s size is reduced to maintain its price - is slipping into British stores. Cadbury has reduced the size of its Dairy Milk chocolate bars by 10 per cent. Getty Images
  • Cadbury’s Creme Egg packages used to contain half a dozen eggs - now they only have five. PA
    Cadbury’s Creme Egg packages used to contain half a dozen eggs - now they only have five. PA
  • Walkers Crisps have reduced their 24-bag multipacks by two, and kept the same price. Photo: Wikimedia Commons
    Walkers Crisps have reduced their 24-bag multipacks by two, and kept the same price. Photo: Wikimedia Commons
  • A box of Quality Street chocolates weighed 1.2kg in 2009, and now just weighs 650g. Photo: Wikimedia Commons
    A box of Quality Street chocolates weighed 1.2kg in 2009, and now just weighs 650g. Photo: Wikimedia Commons
  • There are now only 10 Jaffa Cakes in a box, rather than 12. Bloomberg
    There are now only 10 Jaffa Cakes in a box, rather than 12. Bloomberg
  • Persil now has 75g less washing powder in a box. Getty Images
    Persil now has 75g less washing powder in a box. Getty Images

Cadbury Dairy Milk chocolate bar is hit by shrinkflation


Simon Rushton
  • English
  • Arabic

Shoppers are being hit with a bad news onslaught as the cost-of-living crunch bites and Cadbury Dairy Milk chocolate is the latest victim.

Supermarket executives have warned that they cannot swallow the rising costs to keep shelf prices the same as inflation reached a 30-year high of 6.2 per cent in the year to February.

Shrinkflation — the art of reducing a product’s size to keep its price — has been slipping into British stores as part of the wider surge in inflation.

Ingredients and raw materials are rising and for more and more businesses the only way to keep a price point — especially one as sensitive as the British sweet tooth — is to lose some size.

Cadbury has reduced the size of Dairy Milk sharing bars by 10 per cent as it passes on the impact of soaring costs to customers.

Parent company Mondelez blamed rising inflation in the production of its chocolate as it reduced the size of its larger bars from 200g to 180g. The bars are still being typically sold for £2 despite the size reduction.

Other products — in a far-from-exhaustive list — to see cuts in weight include Quality Street chocolate boxes, which now weigh 650g compared with 1.2 kilograms in 2009.

Walkers Crisps. Wikimedia Commons
Walkers Crisps. Wikimedia Commons

Jaffa Cakes are down by two biscuits to 10, Walkers crisps have reduced their multipack down by two, and the Frazzles multipack now only has six instead of eight packs.

Cabdury’s Creme Egg used to be in a traditional six-box package. Now it contains just five.

Persil washing powder is down by 75g, keeping the price at £5 but cutting the number of washes per pack.

Mondelez, Cadbury’s US parent company, said it was the first shrinkflation for its chocolate in a decade.

In 2011, the 140g chocolate bar was reduced in size to 120g and in 2012, a 49g bar was reduced to 45g, but the price remained at 59p.

“We're facing the same challenges that so many other food companies have already reported when it comes to significantly increased production costs — whether it's ingredients, energy or packaging — and rising inflation,” a Mondelez spokesman said.

“This means that our products are much more expensive to make.

“We understand that consumers are faced with rising costs too, which is why we look to absorb costs wherever we can, but, in this difficult environment, we've had to make the decision to slightly reduce the weight of our medium Cadbury Dairy Milk bars for the first time since 2012, so that we can keep them competitive and ensure the great taste and quality our fans enjoy.”

Consumer price inflation struck a 30-year high of 6.2 per cent in February and is expected to soar beyond 8 per cent in the coming months.

Figures for February showed that food price inflation increased by 5.3 per cent year-on-year, with milk, fresh meat and coffee seeing particularly sharp increases.

ANDROID%20VERSION%20NAMES%2C%20IN%20ORDER
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Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

Cheeseburger%20ingredients
%3Cp%3EPrice%20for%20a%20single%20burger%20%C2%A30.44%3Cbr%3EPrice%20for%20a%20single%20bun%20%C2%A30.17%3Cbr%3EPrice%20for%20a%20single%20cheese%20slice%20%C2%A30.04%3Cbr%3EPrice%20for%2010g%20Gherkins%20is%20less%20than%20%C2%A30.01%3Cbr%3EPrice%20for%2010g%20ketchup%20is%20less%20than%20%C2%A30.01%20%3Cbr%3EPrice%20for%2010g%20mustard%20is%20less%20than%20%C2%A30.01%3Cbr%3EPrice%20for%2010g%20onions%20is%20less%20than%20%C2%A30.01%3C%2Fp%3E%0A%3Cp%3ETotal%2068p%3C%2Fp%3E%0A%3Cp%3ECredit%3A%20Meal%20Delivery%20Experts%3C%2Fp%3E%0A
Results:

6.30pm: Handicap (Turf) | US$175,000 2,410m | Winner: Bin Battuta, Christophe Soumillon (jockey), Saeed bin Suroor (trainer)

7.05pm: UAE 1000 Guineas Trial Conditions (Dirt) | $100,000 1,400m | Winner: Al Hayette, Fabrice Veron, Ismail Mohammed

7.40pm: Handicap (T) $145,000 1,000m | Winner: Faatinah, Jim Crowley, David Hayes

8.15pm: Dubawi Stakes Group 3 (D) $200,000 1,200m | Winner: Raven’s Corner, Richard Mullen, Satish Seemar

8.50pm: Singspiel Stakes Group 3 (T) $200,000 1,800m | Winner: Dream Castle, Christophe Soumillon, Saeed bin Suroor

9.25pm: Handicap (T) $175,000 1,400m​​​ | Winner: Another Batt, Connor Beasley, George Scott

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

RESULTS

Dubai Kahayla Classic – Group 1 (PA) $750,000 (Dirt) 2,000m
Winner: Deryan, Ioritz Mendizabal (jockey), Didier Guillemin (trainer).
Godolphin Mile – Group 2 (TB) $750,000 (D) 1,600m
Winner: Secret Ambition, Tadhg O’Shea, Satish Seemar
Dubai Gold Cup – Group 2 (TB) $750,000 (Turf) 3,200m
Winner: Subjectivist, Joe Fanning, Mark Johnston
Al Quoz Sprint – Group 1 (TB) $1million (T) 1,200m
Winner: Extravagant Kid, Ryan Moore, Brendan Walsh
UAE Derby – Group 2 (TB) $750,000 (D) 1,900m
Winner: Rebel’s Romance, William Buick, Charlie Appleby
Dubai Golden Shaheen – Group 1 (TB) $1.5million (D) 1,200m
Winner: Zenden, Antonio Fresu, Carlos David
Dubai Turf – Group 1 (TB) $4million (T) 1,800m
Winner: Lord North, Frankie Dettori, John Gosden
Dubai Sheema Classic – Group 1 (TB) $5million (T) 2,410m
Winner: Mishriff, John Egan, John Gosden

INDIA'S%20TOP%20INFLUENCERS
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Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: March 30, 2022, 8:23 AM