Confectionery maker Mondelez attracted attention last October when it reduced the amount of chocolate provided to UK consumers of its Swiss-made Toblerone bar while keeping the packaging the same size. The company defended the move as an attempt to avoid passing on rising prices – caused by sterling’s plunging exchange rate in the wake of Brexit.
The story is a symptom of a broader trend: multinational companies are retreating from traditional currency hedging techniques in the wake of unprecedented volatility. Consumer goods giant Procter & Gamble is a good example.