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Mondelez, which also makes Ritz crackers, Philadelphia cheese, Oreos and Milka chocolate, said price hikes were necessary. A spokeswoman said: Increasing prices is always a last resort, but to ensure we can keep peoples favourite brands on shelf and look after the 4,500 people we employ in the UK, we are having to make some selective price increases across our range. Economists have warned that inflation will rise in the coming months as a result of the decline in the value of the pound. Food manufacturers are either increasing prices or shrinking pack sizes dubbed shrinkflation as they look to maintain profit margins as input costs increase. Shrinkflation started during the last recession and in recent years chocolate lovers have been regularly targeted: Mars and Snickers bars have got smaller; 1kg tins of Quality Street and Roses have slimmed down to 820g; and six-packs of Cadburys Creme Eggs also a Mondelez brand have been whittled down to five. Pinterest Mind the gap: the new Toblerone bar comes with added space. Photograph: Darren Staples/Reuters Mondelez, which bought Cadbury in 2010 , was widely criticised last year when it opted to widen the gaps between Toblerones chunky chocolate triangles rather than increase its price. Rival Mars has also shrunk its sharing bags of Maltesers by 15% as it looks for ways to offset rising production costs. Mondelez said rising commodity costs and recent foreign exchange pressures meant its food products were becoming more expensive to make. The pound has fallen sharply against the dollar since the vote for Brexit last summer.
For the original version including any supplementary images or video, visit https://www.theguardian.com/business/2017/jan/12/toblerone-maker-mondolez-hike-price-cadbury-bars-freddo
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