SHOPPERS have been hit by the latest sneaky squeeze as tubs of Flora, Bertolli and I Can’t Believe It’s Not Butter have been shrunk by 10 per cent – but the prices have stayed the same or gone higher.
The spreads, which are all owned by Upfield, have reduced their sizes down from 500g to 450g and some of their kilogram tubs down to 900g.
The price increases come despite the margarine owner recently taking out full page adverts to troll Lurpak
But despite the tubs shrinking, the price of the margarine spreads have stayed the same or even increased in some supermarkets.
Bertolli Original has increased in Tesco from £2.45 for 500 grams to £2.85 for 450 grams meaning shoppers are hit both ways.
The price increases come despite the margarine owner recently taking out full page adverts to troll Lurpak after the popular butter brand.
Last week Lurpak shocked shoppers by charging £7.25 for 750 grams, prompting Asda to put security tags in some stores to protect the now high value item from theft.
Flora advertised at the weekend “Butter price through the roof…Butter lovers, welcome to Flora” as it tried to position itself as a cheaper alternative.
A spokeswoman for Upfield told The Grocer: “We are seeing significant commodity cost increases, including our raw ingredients. This has impacted our supply and has increased our manufacturing costs.
“To continue providing consumers with affordable and quality products we have had to reduce the amount of spread in our 500g tubs to 450g to ensure a reasonable price point and have clearly stated this on pack.”
Upfield is now owned by KKR, the American private equity firm, which bought the spreads business from Unilever for £6 billion in 2018.
Private equity firms are focused on generating profitable returns as they typically only hold companies for around five years before wanting to sell them for a higher price.
The spokeswoman for Upfield added: “During these unprecedented times, we are committed to limiting the impact of these tough times on consumers and will endeavour to provide the best value possible, whilst still remaining competitive.”
Flora is the latest brand to tackle rising costs by shrinking pack sizes.
Nestle has recently reduced their Aero sharing bags by 7 per cent from 201g to 218g and M&M crispy pouches by 13 per cent down from 246g grams to 213 grams despite both chocolate bags saying “more to share”, according to Steve Dresser at Grocery insight.
In May, Tesco shoppers spotted that the grocer has quietly reduced the size of ready meals – but kept the price the same.