Why Wispa’s ‘shrinkflation’ is a question of costs
Wispa has become the latest chocolate bar to shrink down in size.
Manufacturer Cadbury says it is an effort to reduce the number of calories.
The treat is around 7% smaller than its previous size, and is being sold at the same price.
In 2020, the confectionary company cut the size of other popular bars Curly Wurlys, Fudge Bars and Chomps.
Damien McLoughlin is professor of marketing at the UCD Michael Smurfit Graduate Business School.
He told The Hard Shoulder this latest 'shrinkflation' is down to costs.
"The basic problem here is the price of ingredients for these bars.
The price of cocoa in the last 15 years has been around $3,000 a metric tonne - and it's not far off that peak right now, at about $2,500 a tonne.
So costs have gone up".
And he says companies have to be careful about giving consumers a reason not to buy their products.
"I haven't had a Wispa in quite a while... these brands rely on infrequent purchase.”
Read the full article here.
This segment originally aired on Newstalk’s The Hard Shoulder on 28 January 2022.