Freia CEO on Price Hikes: Quality Cannot Be Compromised

Freia, the Norwegian confectionery brand owned by Mondelez International, has defended recent price increases as a necessary measure to maintain product standards amidst rising raw material costs. Managing Director of Freia, André Kaspersen, stated that the company cannot compromise on the quality of its ingredients, which dictates the current pricing strategy for consumers.

Production Costs and Ingredient Quality

According to Kaspersen, the decision to raise prices is directly linked to the fluctuating costs of essential commodities used in chocolate production. He emphasized that the company maintains strict quality requirements for its raw materials, which limits the ability to source cheaper alternatives even when market prices for ingredients like cocoa and sugar experience volatility.

The firm maintains that shifting to lower-grade ingredients to offset rising production expenses is not a viable option for the brand. By prioritizing the established recipe and ingredient profile, the company claims it is managing the economic pressure by adjusting retail pricing rather than altering the physical product.

Market Environment for Confectionery

The broader confectionery sector has faced consistent inflationary pressure over the past year, impacting both manufacturers and retail prices. Mondelez International, which acquired the Freia brand, operates under a global supply chain strategy that has been subject to increased scrutiny regarding the rising cost of cocoa and other agricultural inputs.

While competitors in the FMCG (fast-moving consumer goods) space have experimented with “shrinkflation”—reducing product size while maintaining price points—Freia has pointed to its quality-first mandate as the primary driver for its current approach. The company continues to monitor raw material indices as it evaluates future pricing adjustments.

Next Steps for Distribution

Retailers and supermarket chains remain in ongoing negotiations with Mondelez regarding wholesale pricing structures. These discussions determine the final shelf prices for consumers across Norway. As of this week, no further changes to the company’s ingredient procurement strategy or production standards have been announced.