The CEO is behaving unconventionally.
In a bid to manage escalating costs, Kölln, a seven-generation old German food company, has announced a reduction in the weight of its popular "Knusper Schoko & Keks Kakao Hafer-Müesli" product by ten percent. The change, effective now, sees the pack size drop from 440 grams to 400 grams.
The price hike in raw material cocoa, which has risen from around 2,000 US dollars per tonne to nearly 8,000 dollars over the past three years, has been identified as the primary reason for this adjustment. This trend peaked at an astounding 12,000 dollars per tonne at one point.
Friederike Driftmann, the CEO of Kölln, has received widespread praise for her openness and transparency. In a bid to maintain this reputation, she recently shared an Instagram video explaining the reduction in filling amount to consumers.
Notably, this is not the first instance of shrinkflation—reducing product sizes while keeping prices stable—in the food industry. Many companies, under cost pressures, have resorted to this practice. However, the level of transparency varies greatly among brands.
In a related development, the Consumer Association based in Hamburg, Germany, has previously found "Dr. Oetker" guilty of similar practices. The company's cereal now contains only 400 grams instead of the original 600, but the price remains at 3.99 euros.
Kölln's consumers have expressed their appreciation for the company's transparency, with many praising Driftmann for her approach. It's worth noting that products without chocolate are not affected by the reduction in filling amount.
The Consumer Association has identified similar cases with other companies, highlighting the need for clear communication when such changes occur. As the food industry grapples with rising costs, it remains crucial for companies to maintain consumer trust through transparency.
It is advisable for those seeking more information to check Kölln’s official communications or consumer reports for their explicit stance on shrinkflation and consumer transparency.
In the face of increasing costs due to the surge in cocoa prices, Kölln, despite being a seven-generation old German food company, is exploring alternative finance strategies, such as investing in more cost-effective raw materials or business strategies. This trend of real-estate adjustments, commonly known as shrinkflation, where product sizes are reduced while prices remain stable, is not unique to Kölln; many other companies within the food industry have resorted to this practice, albeit with varying levels of transparency.
