Mr Kipling’s exceedingly costly cakes

But don’t blame him... it’s all the fault of pound’s Brexit plunge, says food giant

SHOPPERS are being forced to pay up to 25 per cent more for some of the country’s favourite foods after a post-Brexit price surge, The Mail on Sunday has found.

Mr Kipling and Cadbury cakes are among the products made by Premier Foods that now cost more – and retail experts warn there is worse to come.

The increases are being blamed on Brexit as the pound’s fall in value brings higher costs and hits the company’s profits.

Mr Kipling Cherry Bakewells and Cadbury Milk Chocolate Cake Bars have increased by 10 percent to £1.60 in several major supermarkets. A Cadbury Triple Choc Roll has risen by a similar amount to £1.65.

Other Cadbury products, which are manufactured on licence from the confectionery giant’s US owner, have also risen.

A Flake Celebration Cake was £ 8 but now costs £9 in most stores and as much as £ 10 in Morrisons – a 25 per cent hike. Butterscotch Angel Delight has increased from 40p to 50p in Asda.

Bird’s Custard Powder is £1.15 in many supermarkets compared with £1.10 before – a 5 per cent rise. Other favourite ranges such as Ambrosia, Bisto and Sharwood’s are also affected.

Supermarkets bosses have repeatedly pledged to resist price rises caused by the fall in the pound. But food retail expert Steve Dresser said: ‘Until now I think people have struggled to say what prices are going up despite all the talk about the effects of the drop in the value of the pound.

‘But retailers and their suppliers are reaching the end of their financial years, have looked at supplier contracts and have clearly had some difficult conversations about cost increases.’

One supermarket negotiator, who asked to remain anonymous, said: ‘We’re moving into a period of inflation and something has to give. Some rises are being absorbed and others will be passed on to the consumer. Different supermarkets might choose to make different decisions about that.

‘Shoppers might switch or wait in the hope things will be discounted, but these are now the choices people are going to have to make.’

Premier Foods accounts for well over £1 billion of supermarket sales annually in Britain and boasts that its products are bought by 95 per cent of British households.

It is understood Premier has asked supermarkets for increases of between 5 per cent and 8 per cent on some lines. However, many of these items were being sold at well below the recommended price, so they have soared as retailers ditch the deep discounts.

Mr Dresser said: ‘It’s a nightmare. People have almost forgotten how much things cost because products such as Mr Kipling are sold so much on discount to get volume and market share. But, in a way, it is good this is being dealt with. Customers will begin to get a better idea of what is a realistic price.’

He added that the price of some goods had fallen recently, particularly for seasonal salads, which are being picked in Britain as warmer weather arrives. Poor weather forced firms to import many products in the spring.

Premier Foods called the price increases a ‘last resort’, adding: ‘This is not across the board and is very much dependent on the category. We are looking at different ways to manage this, utilising a number of levers.’ It said commodity price rises including sugar, chocolate, dairy, wheat and palm oil had also led to rises.

One senior supermarket source said: ‘Normally, currency contracts insulate us from temporary drops in the pound for up to nine months – all big retail firms use them. But they are not designed for these kind of shocks. Shoppers will become more aware of these changes, especially on branded goods, over the coming weeks and months.’

Experts say increases on other products are also on the way. Lord Wolfson, chief executive at Next, said clothing prices are rising.

‘There will be more rises in the coming months’