Supermarket Prices on German Cult Brands on the Rise - Shrinking Economy for Consumers
Increasing Prices and Shrinking Sizes Spark Consumer Outrage
German supermarket shoppers are expressing frustration over rising prices and decreasing package sizes for a popular chocolate brand. The brand, well-known for its availability in numerous stores, finds itself in a potential image crisis.
For months, prices of the popular confectionery have been steadily increasing. This trend is not limited to this particular brand, as many manufacturers, including the brand's parent company, have already announced price adjustments. Despite this preparation, shoppers may still encounter a surprise at the checkout due to the escalating costs of raw materials. The rise in prices forces manufacturers to increase their costs to food retailers, who, in turn, pass on the increase to consumers.
The classic pack size of the brand has diminished while the price remains the same, which has grabbed the attention of consumer advocates, earning the "Packaging Trick of the Month" title for February 2025. The chocolate manufacturer offers an alternative, the XXL variant, also available in most supermarkets. Regrettably, even this size has experienced a slight reduction. In response, the company is introducing a smaller size, smaller than the mega pack, which has raised concerns among consumers who fear the large pack may disappear. Some customers express their disappointment on social media, with complaints about the prices and intentions to stop purchasing the products.
To combat this, the company offers a new chocolate bar, the "Milka Extra," weighing slightly less than the larger chocolate bar. Social media reactions are mixed, with some eager to try it and others opting for other brands due to dissatisfaction with the standard version. The new chocolate bar comes in five distinct flavors, offering an alternative to consumers who are not content with the original or giant pack sizes.
The European confectionery market has been experiencing general price increases, with industry players, such as Mondelez, indicating a 13.4% price increase in Europe during the first quarter of 2025. The phenomenon of "shrinkflation," reducing product sizes while maintaining or raising prices, is becoming more common, potentially leading to consumer dissatisfaction as the perceived value for money decreases.
Competition in the German chocolate market is fierce, with various brands offering a variety of products. Some consumers may perceive other brands as offering better value for money, contributing to dissatisfaction with the brand's pricing and sizing strategies.
Moreover, global economic factors, such as inflation and supply chain disruptions, influence the cost of ingredients and manufacturing processes, contributing to the price increases seen in the retail market. It is essential to consider these broader economic trends when evaluating consumer reactions to price changes and package size reductions.
- Consumers are expressing disapproval over the 'other' popular food-and-drink brands, including the parent company of the chocolate brand in question, as they too have implemented price increases.
- The current 'lifestyle' trend among consumers involves careful assessment of the perceived 'value for money' in their food-and-drink purchases, leading to potential unhappiness with brands employing strategies such as 'shrinkflation'.
