Popular Christmas desserts are being reduced in size even as supermarkets and manufacturers increase their retail prices, as consumers continue to pay more for less under a practice known as “shrinkflation”.
Research by consumer advocacy group Choice has called out Woolworths, Lindt and Aldi for selling smaller packages of chocolates, cakes, and tarts at higher prices as people struggle with the cost of living.
The Choice report, released on Thursday, found Woolworths had increased the price of their home-brand rocky road and salted caramel tarts by 42% per 100g compared with a year ago.
Before Christmas last year, the supermarket giant was selling the tarts in 240g and 210g packets for $7.50, but they are now only available in 180g portions and their price has increased to $8, Choice said.
On Thursday, Woolworths conceded it had “adjusted” its festive tarts since 2023, but said the decision to make the packs lighter was “primarily driven by customer feedback requesting a finer, crispier shell”.
“Separately, like many products, the retail price has been affected by higher cocoa prices and other production costs,” they said.
Choice also found Aldi had increased the price of its Kringle & Co iced Christmas cake from $2.29 to $2.39 for a single serving while reducing their size by 100g to 90g.
A spokesperson for Aldi said it had changed the size and price of the cake because the raw ingredients had become more expensive.
“We understand that any form of price inflation, through raising prices or by reducing package sizes is unpopular with customers – especially during the festive season,” they said.
Choice said Lindt’s Christmas Medley Bag had also shrunk in size – from 414g to 390g this year, but the price had remained the same at $36.
The chocolate manufacturer – which sells its products in supermarkets as well as directly to consumers online – had reduced its Limited Edition Champagne Gala Box from 433g to 396g but had put its price up from $34 to $36.
Lindt did not respond to Guardian Australia’s request for comment before deadline.
Food companies and supermarkets have been regularly reducing the size of their products to pass on costs and increase profits while avoiding a price hike that is more likely to upset customers.
In October, with the major supermarkets under scrutiny amid widespread customer frustration, the Albanese government promised to crack down on shrinkflation.
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The government said it would strengthen the rules around unit pricing, which lets shoppers see the price of products by their volume, weight or per unit.
Guardian Australia understands the government will begin formal consultation on the potential changes to the unit pricing code of conduct early next year. The code sets out which grocery retailers must display unit pricing and how they must do so.
Choice’s Liam Kennedy welcomed the government’s promise to crack down on shrinkflation but said ideally retailers would use signage in stores to make it clear where products had reduced in size.
“Shrinkflation is still difficult to spot,” he said.
Dr Andrew Hughes, a lecturer in marketing at the Australian National University, said customers were being taken advantage of and the government should mandate clearer unit pricing.
“Let’s say white font at size 14 on a green background and it would tell you it would serve so many people at so many grams per serving,” he said, referring to a Christmas pavlova as an example.
“Then suddenly you become a lot more educated. And you might stop and go, ‘Oh, hang on, what’s going on here? Maybe I should try a competitor’s product”.
Last month, the chief executive of the Australian Food and Grocery Council, Tanya Barden, defended the practice as she gave evidence to the Australian Competition and Consumer Commission’s inquiry into the supermarket sector.
“It is often portrayed as being misleading or sneaky, but the reality is, it reflects a very difficult decision that a manufacturer has to make in light of significant cost increases,” she said.
The consumer watchdog is due to hand the final report from the inquiry to the government next year.
