The chocolate industry faces an unprecedented crisis, leading several brands to adjust their revenues to reduce production costs. Although product prices may not have increased significantly, the size of the packaging has diminished, while some ingredients are being replaced by cheaper alternatives.
Less product, same price
The phenomenon, known as “reduflation”, has been admitted by large companies such as Mondelez, responsible for Milka and Oreo, and Mars Wrigley, which holds brands such as M&M, Snickers and Mars. Mondelez Portugal has already indicated that prices could even increase in the future if the trend continues
The main reason for these changes is the increase in the cost of raw materials, especially cocoa. According to industry experts, production prices have reached record values, making it difficult for companies to keep original revenues without compromising profit margins.
To avoid climbing prices significantly and risk losing consumers, several brands have chosen to reformulate their recipes. The replacement of cocoa butter with other lower quality fats is one of the most commonly used strategies and can change the texture and taste of chocolates.
Changes in revenues
To avoid climbing prices significantly and risk losing consumers, several brands have chosen to reformulate their recipes. The replacement of cocoa butter with other lower quality fats is one of the most commonly used strategies and can change the texture and taste of chocolates.
Use of alternative fats
Oils like palm, palm, coconut and even anhydrous milk of milk are being used to replace cocoa butter as they are cheaper. However, these fats do not have the same properties, which can result in a lower consumer experience.
Experts warn that cocoa butter is critical to chocolate quality, as it melts at body temperature, providing a smooth and creamy sensation in the mouth. When replaced by other fats, the product may have a fatter and less refined texture.
Change in sweeteners
In addition to the exchange of fats, some brands are also replacing sugar with glucose syrups and fructose. This change may affect the appearance of the product, making it smoother and favoring the appearance of white fat spots, and increases the sweetness excessively.
Quality of Chocolates
The organization of consumers and users (occupa), a Spanish consumer protection entity, performed a detailed analysis to 30 boxes of chocolates of different brands. The study revealed that only one third of the products analyzed maintained a level of quality considered good or very good.
Products with worse reviews include Nestlé’s iconic red box, which contains a combination of cocoa butter, palm fat, shea, milk anhydrous fat and butter.
Despite the composition considered lower, this product continues to have a high price, costing about 47.96 euros per kilo in Spain.
Another brand that decended was the Sublimes. Although not resorting to glucose syrups, replacement of cocoa butter by butter, coconut oil and sunflower oil resulted in a product with flavor and texture considered unsatisfactory. However, its price is more affordable, prowling the 17.8 euros per kilo in Spain.
Lindt lindt candies, known for their exquisite flavor, did not escape criticism either. Although they contain high quality sugar, the inclusion of coconut oil, palm oil and anhydrous fat from milk has compromised the consumer experience, especially given the high price of 37.45 euros per kilo in Spain.
The famous shells of Praliné Guylian Seashell were another disappointment in the study. Although they do not have major changes in the recipe, the appearance and taste fell short of expectations. Its texture was considered inappropriate, possibly due to excess sugar. With a price of 32.6 euros per kilo in Spain, a superior quality was expected.
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White brands and quality reduction
Changes in revenues are not limited to the best known brands. Many white brands are also resorting to cheaper ingredients to keep their products competitive in the market. This trend reflects the difficulty that companies face to deal with inflation in production costs.
Customer reaction
Consumers, in turn, begin to notice differences in the taste and texture of the chocolates they usually buy. Quality reduction can lead to a change in customers’ preferences, which may choose more faithful alternatives to traditional revenues.
According to the expert recommendation is for consumers to check the list of ingredients before buying. A quality chocolate should contain 100% cocoa butter and avoid alternative fats that can compromise the consumer experience.
The future of chocolate
Although some brands still keep high quality standards, the crisis may continue to affect the industry. It remains to be seen whether companies will find ways to balance costs without compromising consumer satisfaction.
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