The ‘Big Four’ supermarkets in the United Kingdom are all passing on the additional costs to their customers.
This comes as the price of hazelnuts has dropped from £7.70 per kilogram in 2016 to £4.90 per kilogram this year.
Ferrero, Nutella’s parent business, claims that the price increase compensates costs elsewhere in the brand.
It’s time to rob your life savings, kiddies. Prices for Nutella are rising, so your daily jar habit is likely to become prohibitively pricey.
Following an increase in tariffs and taxes at the import stage beginning April 6, 2022, the cost of children’s favorite branded chocolate spreads like Nutella would climb.
Nutella may be one of the world’s most popular chocolate spreads, but it appears that it is facing stiff competition from a couple of retailers.
For years, the chocolate hazelnut spread has been a fan favorite, especially as a topping for pancakes, because it combines with almost everything.
The Directorate General of Customs Valuation in Karachi has raised customs values on branded chocolate spread imports to US$15.23 per kg in order to calculate duties and taxes. The FBR’s directors issued a new value regulation 1627 of 2022 on Thursday in this regard. The valuations have been enhanced from US$2.50 per kg to US$3.15 per kg, according to the judgement.
For uniformity of evaluation, stakeholders in imported chocolate spread requested a Valuation Ruling based on current worldwide and local market pricing. Some importers claimed that their disclosed values are reasonable and should be taken into account when the value is recalculated. They did not, however, offer any relevant documentation to back up their claims.
To arriving at the Customs Value of the subject products, all parties’ perspectives were carefully listened to and considered. To address the value issue at hand, the valuation techniques established in Section 25 of the Customs Act, 1969 were dutifully implemented in their proper sequential order.
Due to the wide range of values provided in the import data and the lack of essential information to arrive at the correct transaction value, the transaction value technique was deemed to be inapplicable. The applicability of the supplied identical/similar products value methodologies to determining the customs value of subject commodities was investigated.
Ferrero is attempting to compensate for the hazelnut shortage by introducing Nutella to the market in 1964 after experimenting with solid loaves of chocolate-hazelnut spread. Oltan, a Turkish hazelnut supplier, was purchased in July. However, it’s very likely that Nutella prices will continue to rise even after that change. If you’re anything like me, you’ll fuss and complain but still hand over your hard-earned dollars. After all, how else are Nutella banana milkshakes supposed to be made? Or how about Nutella pockets? Or get Nutella cronut holes without spending a fortune?
Ferrero, Nutella’s parent company, defended the price hike, arguing that the increased cost would be offset by savings elsewhere in the firm.
Ferrero told The Grocer that it was dealing with “a number of input demands” across the board.
‘We are addressing these difficulties with our retail partners,’ said a spokeswoman.
Although the expense is passed on to the consumer, the specific price increase may differ between stores.
Sainsbury’s, Asda, and Tesco have increased the price of a 200g jar from £1.50 to £1.60, and a 400g jar from £2.50 to £2.70, while Morrisons has increased the price of a 1kg jar from £5.00 to £5.30.