sindydoll
12-09-2009, 09:41
The rising price of cocoa has forced Mars to reduce the size of its Galaxy bars by 17%, less than a year after increasing the price 26%, it has been reported.
The take-home Galaxy bar is being shrunk from 150g to 125g to avoid the need for further price hikes such as last November's, when the shelf price rose from £1 to £1.26, The Grocer magazine said.
Cocoa is suffering from supply issues caused by ageing crops in the West African growing region and by black pod disease, which renders more than a third of each year's harvest unusable, the magazine said.
It quoted one unnamed industry expert as saying the rises in the company's costs probably made the move justifiable - but added that it was a risky move when consumers were generally expecting falling prices.
"Mars' tactic of reducing pack size less than a year after a substantial retail price hike is a dangerous game," she said.
"Whether it was Mars' original intention, or just bad timing, this is a very raw deal for consumers, who are paying significantly more for significantly less."
A spokesman for the company told the Press Association: "Like all food manufacturers we face significant cost increases due to rising commodity prices and higher production costs.
"Whilst we look to absorb these costs where we can, sometimes the weight or price of a product will change.
"We work hard to ensure that we continue to offer great value for money to our consumers."
http://uk.news.yahoo.com/21/20090912/tuk-size-of-galaxy-bars-shrinks-by17-6323e80.html
The take-home Galaxy bar is being shrunk from 150g to 125g to avoid the need for further price hikes such as last November's, when the shelf price rose from £1 to £1.26, The Grocer magazine said.
Cocoa is suffering from supply issues caused by ageing crops in the West African growing region and by black pod disease, which renders more than a third of each year's harvest unusable, the magazine said.
It quoted one unnamed industry expert as saying the rises in the company's costs probably made the move justifiable - but added that it was a risky move when consumers were generally expecting falling prices.
"Mars' tactic of reducing pack size less than a year after a substantial retail price hike is a dangerous game," she said.
"Whether it was Mars' original intention, or just bad timing, this is a very raw deal for consumers, who are paying significantly more for significantly less."
A spokesman for the company told the Press Association: "Like all food manufacturers we face significant cost increases due to rising commodity prices and higher production costs.
"Whilst we look to absorb these costs where we can, sometimes the weight or price of a product will change.
"We work hard to ensure that we continue to offer great value for money to our consumers."
http://uk.news.yahoo.com/21/20090912/tuk-size-of-galaxy-bars-shrinks-by17-6323e80.html