Feline Hungry?          March 2023

The Brits are renowned for loving their pets.  They spend £2.7bn a year on pet food in a market dominated by big companies such as Whiskas owner Mars Petcare, as well as Nestlé and Colgate-Palmolive.

The price of Whiskas, a well-known cat food brand, has increased sharply in the last year.  A 12-pack of Whiskas costs about £4.50, which is almost £1 more than a year ago, and nearly 40% higher than 2 years ago when a similar pack cost about £3.25.  Mars Petcare attributes these increases to cost inflation, which includes the rise in the cost of raw materials, labour, and overheads.

However, pet owners have also noticed another type of inflation: shrinkflation.  The Whiskas packs have fallen from 100g to 85g.  Meanwhile, some cats have spotted skimpflation, which is when brands are reformulated with cheaper ingredients to reduce manufacturing costs. And recently there has been reference to greedflation, which is when retail prices increase beyond the inflationary costs to generate higher profits.  It is alleged that some companies are profiteering because of the latest flux in costs and supply chains.  The Governor of the Bank of England has asked firms to demonstrate restraint.  It is unlikely they will.

As for the cats, they are wondering why they have less food in their bowls and why it tastes different.  The explanation is purrrfectly simple: costs and profit and greed.

The Management Accounting Team

The Department of Finance, Accounting and Economics