Maltesers are the latest chocolate snack to have shrunk in size. Large bags have been reduced from 121g to 103g because of a rise in the costs of production. The weight reduction apparently occurred months ago but has only just been noticed by an observant consumer. The wholesale cost of sugar has increased by 43 per cent, cocoa butter 23 per cent at the same time the value of the pound has depreciated by 16 per cent. The reduction in size of Maltesers follows on from similar cuts in the size and weight of Terry’s Chocolate Oranges and Toblerone. According to the market research company Mintel, the confectionary market is dominated by four firms with a combined market share of 43.6% (Mintel 2013).

To what extent do you think that the market for chocolate is oligopolistic and
why do chocolate manufacturers prefer to change the weight of their products rather than the price?



Balance of Trade