Ornua has changed the size of its Kerrygold Salted and Unsalted Butter blocks in the UK from 250g to 200g, The Grocer can reveal.
The Irish dairy brand has phased in a smaller pack size across the major retailers since the start of September.
It said it had made the decision due to “sustained cost pressure in the dairy sector”.
“To ensure our products remain accessible to the growing number of shoppers who choose Kerrygold, we have adjusted the pack size which brings Kerrygold block butter products in line with all of the other top five major block butter brands that have moved to 200g packs in recent years,” said an Ornua Foods UK spokesperson.
Arla shrunk packs of its Lurpak and Anchor block butter lines in April 2023, citing the cost of living crisis.
According to The Grocer’s analysis of Assosia data [52 w/e 3 October], Tesco, Ocado and Sainsbury’s have kept price per gram the same since the pack size swap with appropriate cost deduction.
However, both Asda and Waitrose have kept pack prices the same, meaning the price per gram has increased by over 25%.
Morrisons has marginally increased the cost to reflect the size deduction but per gram prices are still up 12.1%, with per 100g price rising from £1.16 to £1.30.
“We are confident that Kerrygold, with its unique taste credentials and premium quality, continues to offer strong value and choice across the full range, which includes our 250g tub, 100g butter sticks and the 500g block introduced earlier this year,” the spokesperson added.
In the latest accounts filed to Companies House, parent company Ornua had seen turnover increase by 1.5% in the year to 28 December 2024. However, the business saw operating profit fall by 45% from £14.5m to £8m.
This comes as farmgate milk prices have been slashed due to supply outpacing demand, with production at its highest point in a decade.
Asda, Waitrose and Morrisons have been approached for comment.
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