Mondelēz to increase Freddo price 20% to 30p

By Matt Atherton contact

- Last updated on GMT

The price of Freddo bars is expected to go up by 20% to 30p (Flickr/Laineys Repertoire)
The price of Freddo bars is expected to go up by 20% to 30p (Flickr/Laineys Repertoire)

Related tags: Cost

Mondelēz International has blamed increased costs for the expected 20% price rise of its Freddo chocolate bars to 30p this spring.

The chocolate maker blamed the falling value of sterling for the “selective price rises”​. The latest price increase came after Mondelēz International sparked a social media storm​ by widening the gaps between Toblerone’s chocolate peaks.

Price increases were a last resort, Mondelēz International claimed.

‘Foreign exchange products’

“It is well reported that food and drink manufacturers have been experiencing increasing commodity costs for some time which, coupled with recent foreign exchange pressures, are making food products more expensive to make,”​ said a Mondelēz International spokeswoman.

“For example, the price of cocoa, which we import into the UK, is up by over 50% since 2013.”

“We have, and continue to, carry these increased costs within our business as much as possible, because our priority is to keep our brands as affordable as we can. Increasing prices is always a last resort, but to ensure we can keep people’s 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.  Importantly it is the retailer who ultimately sets the price on shelf.”

10p in 2000

Freddo bars cost 10p in 2000, and have decreased 3g in weight since 2011. Since 2000, Freddo prices have increased at a faster rate than inflation.

Mondelēz International reported a £448M profit in its latest three-month trading update​. It also reported a 13% decrease in costs to £1.3bn.

Meanwhile, Mr Kipling and Bisto gravy maker Premier Foods revealed last week that it was in talks with retailers over a 5% price rise​. It blamed the increased prices on the falling value of the pound.

In October, Unilever found itself in a row with supermarket Tesco over the price of its Marmite and PG Tips​ products. The manufacturer had attempted to raise its prices by 10%, blaming increased costs.

Freddo price rise – at a glance

  • Freddo bars in expected 20% price rise to 30p
  • Mondelēz International blames falling value of the pound
  • Freddo bar’s price up 200% since 2000

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