Easter confectionery products in Australia have continued to reduce in size while retail prices have risen, indicating that shrinkflation remains in place for a second consecutive year.
Consumer group Choice said a range of chocolate products and seasonal baked goods have been adjusted over the past 12 months. Some Aldi products have been reduced in size and increased in price, continuing a pattern observed during the previous Easter period.
“Easter is the perfect time for indulging in chocolate treats, and a great opportunity to set up Easter egg hunts for the kids,” said Choice journalist Liam Kennedy. “Unfortunately, Cadbury has delivered a cut in size, but a rise in price, to some of their Easter chocolates for the second year in a row.”
Shrinkflation across product ranges
Choice found that Cadbury Dairy Milk’s range of boxed hollow eggs has been reduced in size and increased in price. A 15-egg pack priced at $15 has replaced an 18-egg pack that previously sold for $13.50. A 10-pack has been reduced by one egg and increased in price by close to $2, while a nine-egg pack has been replaced by an eight-egg version.
The largest product in the range recorded the largest adjustment. Choice said a pack that previously contained 24 eggs has lost 68g and increased in price by $5.50 over two years, resulting in a price per 100g increase of close to 73 per cent.
These changes have taken place as wholesale cocoa prices have eased in recent months, although the decline has not yet flowed through to retail pricing. Manufacturers continue to cite input and operating costs as factors behind product and pricing adjustments.
Shrinkflation has also been observed in other categories. Choice said Aldi’s Rocky Road and Banoffee hot cross buns have each declined by 20g compared to the same period last year. With no change in retail price, the cost per 100g has increased by close to 7 per cent.
Diverging responses among manufacturers
Some manufacturers have taken different approaches. Aldi restored the size of its Dairy Fine mini chocolate egg packs, with a price increase of around one-third.
Other products have maintained pack size but increased prices. A 340g Cadbury Dairy Milk egg is now priced at $23, an increase of $3 compared with the previous season. Data from Zyft shows that prices for Easter rabbits and eggs from Cadbury and Lindt increased by up to one-third over the past year.
Cost pressures remain a factor
Manufacturers said increases in input, production and logistics costs are driving these changes. Mondelez, owner of Cadbury, said changes were made to maintain pricing within a certain range as global cocoa costs fluctuate.
Cocoa prices increased by close to 200 per cent in early 2024 before declining in recent months due to improved weather conditions and higher output in producing regions. However, Michael Whitehead, executive director of food, beverage and agribusiness Insights at ANZ, said the recent decline occurred too late to affect Easter pricing this year.
The Australian government is considering mandatory notices that would require businesses to notify consumers when product sizes change.
“Shrinkflation is hard to spot, so these notices should be clear and placed near the product for a reasonable period to ensure consumers are aware of the change,” Kennedy said.
