Monkey business? Cadbury has already upped its prices |
James Ball, The Grocer 19 December 2009 In: Manufacturers
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Kraft warned this week that an independent Cadbury would mean pricier chocolate and it appears it already does.
Cadbury has pushed through a raft of hefty product cost price rises this month, The Grocer can reveal. The confectioner, which has faced massive cost price inflation on sugar and cocoa this year, has increased the cost price of many of its brands, including Dairy Milk and Flake.
The increases had led to shelf price rises of up to 25% at Tesco and Sainsbury's over the past fortnight, research for The Grocer by Brand View revealed.
The company has made more price increases than its rivals recently eight of the top 10 confectionery price increases in the past month at Tesco and Sainsbury's have been on Cadbury products, although over the year its price rises are in line with those of its competitors.
Cadbury insisted the price increases were a reflection of commodity prices and not an attempt to grab extra profit margin.
"Increases were necessary given the rising cost of commodities, particularly cocoa, which is now trading at a 24-year high," said a spokesman.
Assosia research shows that for a second year running Cadbury has been the most-promoted brand in retailers' power aisles. The number of featured space promotions on Cadbury products, including licensed non-confectionery lines made by third parties, rose 94.6% from 1,319 in 2008 to 2,567 in 2009.
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