Mondelez International Expects 2025 Earnings to Drop amid Soaring Cocoa Costs
Mondelez said it expects adjusted earnings per share in 2025 to decline about 10% due to cocoa inflation. The company is specifically focused on its chocolate business as it navigates cocoa cost challenges.
URL: https://www.msn.com/en-us/money/economy/mondelez-international-expects-2025-earnings-to-drop-amid-soaring-cocoa-costs/ar-AA1ypUzd
Commitment to 2050 Net Zero Emissions Target
Source 100% cocoa volume for chocolate brands through Cocoa Life Program by 2025; Source 100% wheat volume for EU biscuits through the Harmony Program by 2022; Design 100% of packaging to be recycle ready by 2025; reduce overall virgin plastic use by 5% and reduce overall virgin rigid plastic by 25% by 2025.URL: https://www.mondelezinternational.com/news/commitment-to-2050-net-zero-emissions-target/
Mondelēz Advances Sugar- and Fat-Reducing in Chocolate Bars with New Technology
According to Mondelēz, the new tech could remove up to 75% of the sugar and fat from some of its chocolate and biscuit products. The tech can also be used to create reduced-fat, sugar- and calorie-versions of fillings, including honeycomb, caramel, marshmallow, fudge, and nougat, without compromising on taste or texture.
URL: https://www.foodbusinessafrica.com/mondelez-advances-sugar-and-fat-reducing-in-chocolate-bars-with-new-technology/
shrinkflation in the czech Republic: A closer Look at Reducing Package Sizes
In the realm of economics, a term has gained traction that combines the words “shrink” and “inflation,” giving rise to “shrinkflation.” This phenomenon,known in Czech as “smrskflation,” refers to the practice of manufacturers reducing the size or weight of products while maintaining the same price. This subtle yet impactful strategy often goes unnoticed by consumers, who may end up paying more per unit of the product.
The unseen Price Hike
Economists and consumer protection associations have warned that manufacturers frequently reduce package sizes without alerting consumers. This means that while the price of a product might remain the same, the amount of product you receive decreases. As an example, a bar of chocolate that used to weigh 100 grams might now be 90 grams, yet the price tag remains unchanged.
Ancient Context and Examples
the practice of shrinkflation is not new. It has been occurring for many years, regardless of the price of raw materials. For example, until mid-2023, Mondelez’s cooking chocolate was sold in a 100-gram package. However, this was reduced to 90 grams, a change that might have gone unnoticed by many consumers.
Similarly, the salt bars of Bohemia were sold in a large 190-gram package until mid-2023. This was then replaced by a smaller package weighing 160 grams. Kopčilová noted that even smaller packages, such as those weighing 85 grams, were reduced to 80 grams.
Impact on Various Products
Shrinkflation is not limited to sweets. The phenomenon has also affected other products, such as potato chips and condiments. Kupi.cz,a server that monitors the progress of prices in discount leaflets,registered twenty different variants of Bohemia Chips from 2012 to last year. These variations were sometimes sold concurrently, highlighting the frequency of package reductions.
Heinz ketchups, mayonnaise, and other dishes have also been affected by this trend. The reduction in package sizes has become a common strategy for manufacturers to manage costs and maintain profit margins.
Consumer Awareness
The impact of shrinkflation on consumer behavior is significant. While some consumers might switch brands when prices increase, others may not notice the reduction in package size and continue to pay the same price for less product.
A recent poll asked readers whether they watch the price when purchasing. Out of 3079 respondents, the results indicated a high level of price consciousness among consumers. This suggests that while many consumers are aware of price changes, the reduction in package sizes may still go unnoticed.Summary of Key Shrinkflation Examples
| Product | Old Size | New Size | Change |
|——————————|————|————|——————|
| Cooking Chocolate | 100 grams | 90 grams | Reduced by 10 grams |
| Bohemia Salt bars | 190 grams | 160 grams | Reduced by 30 grams |
| Small Packages | 85 grams | 80 grams | Reduced by 5 grams |
| Bohemia Chips | Various | Various | Multiple reductions |
Conclusion
Shrinkflation is a strategic move by manufacturers to manage costs and maintain profit margins. While consumers may be aware of price increases, the reduction in package sizes often goes unnoticed. As the practice continues, it is indeed essential for consumers to be vigilant and read labels carefully to ensure they are getting the best value for their money.
For more insights into the economic impact of shrinkflation and how it affects various products, visit Kupi.cz.
Image Source: Novinky.cz
Shrinkflation in the Czech Republic: A closer Look at Reducing package Sizes
In the realm of economics, a term has gained traction that combines the words ”shrink” and “inflation,” giving rise to “shrinkflation.” This phenomenon, known in Czech as ”smrskflation,” refers to the practice of manufacturers reducing the size or weight of products while maintaining the same price. This subtle yet impactful strategy often goes unnoticed by consumers, who may end up paying more per unit of the product.
The Unseen Price Hike
World-Today-News.com Editor ([Editor’s Name]): Can you elaborate on how common shrinkflation is in the Czech Republic?
Guest Expert ([Expert’s Name]): Shrinkflation is a prevalent yet often overlooked issue in the Czech Republic. Manufacturers frequently reduce package sizes to manage costs and maintain profit margins without alerting consumers. As an example, a bar of chocolate that used to weigh 100 grams might now be 90 grams, with the price tag remaining unchanged.
Editor: How do economists and consumer protection associations view this trend?
Expert: Economists and consumer protection associations have warned that this subtle strategy can lead to consumers paying more per unit of the product without realizing it. The reduction in the amount of product received often goes unnoticed, leading to an unseen price hike.
Ancient context and Examples
Editor: How long has shrinkflation been happening, and can you provide some ancient examples?
Expert: The practice of shrinkflation has been occurring for many years, regardless of the price of raw materials. Until mid-2023, mondelez’s cooking chocolate was sold in a 100-gram package. However, this was reduced to 90 grams, a change that might have gone unnoticed by many consumers. Similarly,Bohemia salt bars were sold in a large 190-gram package until mid-2023,replaced by a smaller package weighing 160 grams.
Impact on Various Products
editor: Is this trend limited to sweets, or does it affect other products as well?
Expert: Shrinkflation is not limited to sweets. The phenomenon has also affected other products, such as potato chips and condiments. For example, Kupič.cz, a server that monitors the progress of prices in discount leaflets, registered twenty different variants of Bohemia Chips from 2012 to last year. These variations were sometimes sold concurrently, highlighting the frequency of package reductions. Heinz ketchups, mayonnaise, and other dishes have also been affected by this trend.
Consumer awareness
Editor: How does shrinkflation impact consumer behavior?
Expert: The impact of shrinkflation on consumer behavior is notable. While some consumers might switch brands when prices increase, others may not notice the reduction in package size and continue to pay the same price for less product. A recent poll asked readers whether they watch the price when purchasing. Out of 3079 respondents, the results indicated a high level of price consciousness among consumers. This suggests that while many consumers are aware of price changes, the reduction in package sizes may still go unnoticed.
Summary of Key Shrinkflation Examples
| Product | Old Size | New Size | Change |
|———————|————|————|————————————–|
| Cooking Chocolate | 100 grams | 90 grams | Reduced by 10 grams |
| Bohemia Salt bars | 190 grams | 160 grams | Reduced by 30 grams |
| Small Packages | 85 grams | 80 grams | Reduced by 5 grams |
| Bohemia Chips | Various | Various | Multiple reductions |
Conclusion
Editor: What are the main takeaways for consumers regarding shrinkflation?
Expert: Shrinkflation is a strategic move by manufacturers to manage costs and maintain profit margins. While consumers may be aware of price increases, the reduction in package sizes often goes unnoticed. As the practice continues, it is essential for consumers to be vigilant and read labels carefully to ensure they are getting the best value for their money.
For more insights into the economic impact of shrinkflation and how it affects various products,visit Kupi.cz.
This interview has provided an in-depth look at the phenomenon of shrinkflation in the Czech Republic,its impact on consumer behavior,and essential tips for remaining vigilant against this subtle pricing strategy.
