Cost of living: Strauss raises prices, but hides behind a small manufacturer
Strauss is trying to recoup some of the losses following the salmonella affair, by raising the price of yeast products in its exclusive distribution.
The official reason for the rise in prices is the increase in the price of raw materials for the manufacturer.
Industry senior: "How easy it is to put a small cannonball producer into a giant company that wants to make a profit"
Liat Ron
26/06/2022
Sunday, 26 June 2022, 12:59 Updated: 13:21
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Strauss raises the prices of yeast products, but evades responsibility: Two months have passed since the day Strauss announced the recall of its chocolate products, on suspicion of salmonella inventions, and there is still no deadline for their full return to the shelves.
In the meantime, the company needs to reduce losses and test Walla!
Suggests that it apparently decided to do so in a sophisticated way, through yeast products, which is (Strauss) their sole distributor and is an influential factor, to say the least, on their prices, even though they do not bear the explicit name "Strauss".
Industry insiders told Walla: "How easy it is to put a small manufacturer as cannon fodder for a giant company that wants to rake in profits."
Among the products that will become more expensive will be dough yeast, and yeast butter substitutes, the prices of butter substitutes will go up, held tight, by no less than 30%.
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Salt-free margarine and butter-flavored margarine (illustration).
30% price increase (Photo: ShutterStock)
An exclusive distributor is like a partner
In a letter distributed by Strauss, which infuriates retailers, the products of Shimrit, which she intends to price, are listed: Salt-free margarine and butter-flavored margarine will cost NIS 4.15 instead of NIS 3.19 today, a 30% increase, a yeast cube will increase from NIS 2.41 to NIS 2.51. %, Fresh yeast will increase from NIS 3.14 to NIS 3.27, an increase of 4%, puff pastry, pizza dough, filo dough and crispy dough from chilled ones, will increase from NIS 10 to NIS 10.30, a total increase of 3%.
The reason for the price increase indicated in the letter is "the rise in the price of raw materials."
Strauss, which has been exclusively distributing Yeast products for the past 20 years, is dominant in decisions such as when and how much the price will go up.
"They have their own perceptions and desires, and they are the ones who are in negotiations with the retailers," says the same industry source. "Ultimately, an exclusive distributor is as a partner that has a lot of room for his input."
Strauss, for its part, denies any business connection to Shimrit and claims that it is merely the one that transports the products in its trucks.
Therefore, the attempt to avoid involvement in the rise in prices, which should reduce the huge recall losses (which according to the report to the stock exchange is between NIS 170 and 230 million), is ostensibly a kind of misleading the public.
Strauss knows that this is their only way to raise prices without angering consumers, as they hide behind Shimrit's slender back.
Exactly two months ago: Strauss Elite products are collected from the shelves (Photo: Reuven Castro)
The recall incident, which, as mentioned, has not yet come to an end, caused severe damage to Strauss' image, which has been clean for years.
It should be noted that the company took full responsibility for the failures discovered at the candy factory in the Galilee landscape and compensated the customers for the returned products
.
Recently, company officials said that even when the Ministry of Health approves the reopening of the plant, it will not return to full operation at once, but a run-in period is expected in which the company will make sure all lines work properly and products are healthy and product quality.
Only then will it be decided which product will return to the shelves first.
These moves are intended both to ensure the safety of the products and to restore consumer confidence, some of which will have difficulty returning and repurchasing the company's products.
It is doubtful whether the sophisticated price increase "at the back door" will benefit Strauss at this time.
A guard was delivered in response
: "Due to the continuing rise in the cost of goods and import costs, both due to the corona and the crisis in Europe, which created a shortage of raw materials, along with sharp price increases in oil, flour and fuel prices, affecting production, energy and transportation costs. "Puppies per unit. We will continue to work continuously for our customers with the availability of the products and the minimum price costs as much as possible."
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Strauss
Yeast
Salmonella
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