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.
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.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Results:
First Test: New Zealand 30 British & Irish Lions 15
Second Test: New Zealand 21 British & Irish Lions 24
Third Test: New Zealand 15 British & Irish Lions 15
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
The specs
Engine: 5.0-litre V8
Power: 480hp at 7,250rpm
Torque: 566Nm at 4,600rpm
Transmission: 10-speed auto
Fuel consumption: L/100km
Price: Dh306,495
On sale: now
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Mohammed bin Zayed Majlis
Zayed Sustainability Prize
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