The price and pack sizes of Arla’s butter brand Lurpak are being reduced in a move the brand says is aimed at supporting shoppers during the cost of living crisis.

The recommended retail price of 250g and 750g packs of spreadable Lurpak have been reduced, although the brand noted that pricing is set by retailers.

Meanwhile, a new 400g spreadable pack is being rolled out to replace its 500g tub. This follows the recent introduction of a 200g block butter to replace the 250g pack. Lurpak confirmed that whilst pricing on shelf is set by retailers, the price per 100g for its new 200g block butter and 400g spreadable packs should be 20% lower for shoppers.

Arla stated that the changes had been driven by shopper research to understand the best pack size and pricing options to help cash-strapped consumers.

Lurpak-spreadableAsh Amirahmadi, the company’s Managing Director, said: “At Arla we recognise the inflationary cost of living pressure on consumers as they struggle to balance their household budgets. It’s important that Lurpak invests in easing that pressure on cash-strapped shoppers when we are able to.

“There are many different factors that affect the price consumers pay in store, and we work extremely closely with our retail partners to ensure we deliver tasty, quality dairy at the best possible price for shoppers.”

NAM Implications:

– So, if retailers adhere to recommended retail prices…
– …the Lurpak shopper will receive a more appropriate pack size.
– All depends on the consumer recognising the reduction in pack size and price are pro rata…
– …In order to avoid the perception of ‘shrinkflation’.