Chocolate prices could rise in the wake of Brexit
As Brexit talks intensify, concerns about the cost, size and quality of chocolate in the UK are growing.
‘In a recent article titled UK Chocolate Sizes Continue to Shrink as Industry Faces New Challenges, BizVibe examines the potential impact that Brexit will have on the United Kingdom’s chocolate. In it, BizVibe says Brexit may result in smaller chocolate bars and potentially steeper prices.
While many chocolate industry leaders intend to remain in the UK post-Brexit, they are expected to be faced with a new set of challenges.
For example, chocolate giant Cadbury has announced its decision to stay in the UK. However, while the company will initially attempt to counteract potential cost increases by increasing productivity, it has warned that customers may end up absorbing some of the excess costs.
Mars has also stated that its prices may rise if the UK makes an unfavourable trade deal with the European Union (EU). If tariffs are as high as 30% the cost is likely to be passed on to customers.
Another development that may affect chocolate bar sizes is a recommendation from Public Health England (PHE) to combat childhood obesity by reducing sugar content in snack products by 20%. The confectionery industry has stated that it would be difficult to reduce sugar without compromising flavour, which has led PHE to suggest cutting down on the size of snacks instead.
The future of chocolate prices, sizes and quality will remain uncertain until a trade deal is made with the EU and manufacturers know what their costs will be going forward.