Unilever defends shrinkflation of products

THE Unilever boss has refused to rule out cutting the size of its products after it was criticised for shrinking Magnum ice creams and Simple soap bars.

Hein Schumacher, chief executive, defended its use of shrinkflation, which means supermarkets charge the same price for smaller products or multipacks with fewer items.

Mr Schumacher said: “I offer two perspectives. The first is, in some cases, it’s important to offer an entry pack.

“That means a smaller pack for consumers who are indeed more cashstrapped, and who need a smaller size, to simply be able to get food on the table or provide themselves daily necessities.

This is something that we have done historically, globally in many of our emerging markets. When that is needed in developed markets, we will do that.”

In March last year, Unilever cut the number of ice creams sold in a multipack of Magnums from four to three, but the price remained the same.

Other examples include replacing 125g Pure soap bars sold under its Simple brand with 100g bars in May 2023, a 20pc reduction in size.

Alan Jope, the company’s ex-chief executive, had suggested shrinkflation could be better than raising prices.

Mr Schumacher added: “I’m not saying shrinkflation is a good idea. I said it might make sense for consumers in times when they are more cashstrapped. When affordability is an issue to provide smaller size entry packs.”

Unilever posted “disappointing” results, admitting it was struggling to win market share because of shoppers switching to supermarket own brands amid rising prices. Turnover fell 0.8pc to €59.6bn (£51bn). Underlying operating profits rose 2.6pc to €9.9bn.

20pc Reduction in the size of Unilever’s Pure soap bars sold under its Simple brand, from 125g to 100g, last May