Eggs in one basket? Consumers in Europe and US hit by ‘shrinkflation’ and chocolate costs this Easter

Richard Price, director of Britsuperstore, said: “Easter eggs can sometimes go up in price the closer it gets to Easter, so buying early can be beneficial. However, waiting until after Easter may also result in discounter prices as supermarkets aim to clear out old stock.”

The Swiss luxury chocolatier Lindt has already warned consumers it has “no choice” but to increase the prices of its products. It has not revealed the exact figure for the higher prices but said in its last financial report the cost of some raw ingredients has risen by 114%.

London’s Metro newspaper reported Lindt’s classic 100g chocolate bunnies are currently priced at £3.75 in supermarkets, including Sainsbury’s and Waitrose, and £3.50 in Tesco.

Gilles Rouvière from the Syndicat du Chocolat, which represents 70 chocolatiers, including Lindt, Ferrero, and Nestlé, confirmed the price hikes in an interview with French publication Actu. He said the change in prices had been blamed on rising costs of packing, transport, and salaries.

“The fault lies with torrential rains in Ivory Coast and Ghana, combined with a significant drought, which disrupted the harvests.”

Nidhi Jain, commodity specialist at The Smart Cube, said: “Although chocolate costs are yet to surge, largely due to major chocolate producers having purchased the commodities in advance and stocked inventory, prices are likely to increase ahead of Easter.

“This is because chocolate producers have failed to restock inventory, anticipating that cocoa and sugar prices would drop. In fact, the opposite has happened, with cocoa’s value continuing to rise.

“As the supply of both commodities dwindles, chocolate makers are expected to raise prices accordingly, passing rising costs onto consumers prior to Easter.”

‘Shrinklation’

Consumers in Europe and the United States are not only having to contend with a hike in prices because of a global shortage of cocoa beans but also with ‘shrinkflation’ on some of the most popular Easter egg brands. Manufacturers reduce the size of the product while keeping the price the same—or, in some cases, making it more expensive.

None of the major brands have declared smaller sizes on packs, but research by the Daily Mail using data from retail experts Assosia and a separate study by Which? has described the practice as a ‘scandal.’

It reported the large Mars milk chocolate egg is down from 252g to 201g, a 20 percent reduction, yet the price has remained the same at £3.

The Twix milk chocolate Easter egg has been reduced from 246g to 200g, and the Galaxy Minstrels Easter Egg has been reduced from 234g to 192g. Mars also makes both.

Further research by consumer watchdog Which? Reveals further price rises on Easter chocolate:

• For example, the average price of a Maltesers Truffles Luxury Easter Egg (286g) has risen from £8 to £13, which equates to a rise of 62.5%.
• At Asda, a Lindt 5 Gold Bunny Milk Chocolate (50g) increased from £2 on average to £3.11 on average - up 55.5%
• At Tesco, a Ferrero Rocher Golden Easter Egg (250g) rose £10 to £15 – up 50%.

A Nestle spokesperson said: 'Each year we introduce a new Easter range with formats, sizes, weights, and RRPs based on various factors including the cost of manufacturing, ingredients, and transport and the preferences of our customers and consumers.'

Mars Wrigley UK said: 'We have been actively trying to find ways to absorb the rising costs of raw materials and operations, as we know the increase in the cost of living has impacted consumers and businesses across the UK.”

Governments on both sides of the Atlantic have criticised the deception of shrinkflation and threatened action.

In France, some supermarkets use shelf labels to identify the products involved.

US president calls out ‘shrinkflation'

In the United States, President Joe Biden called out shrinkflation in his 2024 State of the Union address.

“It’s called shrinkflation,” Biden said in his speech. “You get charged the same amount, and you got about, I don’t know, 10% fewer Snickers in it.”

According to the AP, the president’s focus on shrinkflation is part of a broader strategy to reframe voters' thoughts about the US economy before the November election. “He is trying to deflect criticism about high prices and instead blame big business.”

Easter candy celebrations

According to the US National Confectioners Association, 92% of Americans will still celebrate Easter with chocolate and candy.

“The Easter season signals the start of spring – and is a perfect showcase of the continued excitement consumers have for incorporating chocolate and candy into their special occasions. No matter what treats they prefer, Americans can agree that every celebration is sweeter with chocolate and candy,” said John Downs, president and CEO of the National Confectioners Association:

Britsuperstore’s Richard Price explained how UK consumers can get the best deals this Easter: “When looking for the best deals in supermarkets, look out for special offers. Many supermarkets run Easter promotions like “buy one get one free” or multibuy offers.

“Shopping around can be incredibly beneficial, as different supermarkets are often competing to be the best value, so comparing supermarket prices can be a great way to get the best prices. “