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We bought less and paid more: how much did the food companies profit from this? - Walla! Of money


What did we buy and how much did we pay? Did the ultra-Orthodox spend more because of the tax on disposable utensils and sweet drinks - and no less intriguing: what happened to the profits of the large manufacturers and importers?

A year at the supermarket: what did we spend more on?

Where did we choose to save - and what did we not give up even when the price went up? (Photo: ShutterStock)

The year 2022 will be recorded as a significant year in the field of food retailing: the storm of price increases for the consumer, the consumer protest, launches, acquisitions, changes among the brands of the marketing chains, the salmonella affair that disappeared from the shelves the best-selling brands in the chocolate category, the political experience that failed to prevent Ben & Jerry's from selling settlements, games The power of importers and manufacturers with the chains, the strengthening of private brands and more.

So what did 2022 really do to our consumer consciousness - and is it a real change or a protest to let off steam, for which we ended up paying with interest?

The concentration in the consumer goods market is one of the main reasons for the cost of living and the price differences between the local market and the rest of Europe and the neighboring countries from Jordan to Turkey. The plan presented by the finance and economy ministers is correct, at least on a theoretical level, but we have already seen quite a few reforms that looked great on paper, but It failed the result test, mainly because of the inability of the professional level in the government ministries to also understand the consumer reality, on the ground - and not to base it only on economic-mathematical models.

Dissolving monopolies can indeed lead to a recession in the great power of large producers and importers, but what will be the restrictions on the new players in the market?

What's more: the processes of acquisitions and mergers lead to centralization at the global level as well, does Azma work in Europe and North America but not here?

Perhaps simple restrictions on trade, continuous control and quality and decisive enforcement.

According to data from the Storenext company, the financial data for 2022 compared to 2021 shows a financial growth of 2.70% in the retail turnover, but - and this is a big "but": it turns out that we bought less.

It is true that consumer awareness of price and smart consumerism has increased, but despite this, the growing awareness has not been able to translate into a discounting trend.

In other words: we bought less but paid more.

If food prices had not increased, we should have seen a 2.40% decrease in business turnover and not a 2.70% jump - that is, the consumer price index shows a 5.10% jump figure.

Despite this, there are areas where prices have risen sharply and there are areas where the price has decreased.

Soft drinks: the fastest growing segment last year (cash flow), but not for the "right" reasons (Photo: ShutterStock)

In all areas of consumer products, there were decreases in the volume of activity along with increases in price.

We referred to the four main segments of the consumer products:

 The


segment grew by 9.30% in the volume of sales (in money) compared to the consumer price index figure which jumped by 11.80%. The main change is due to the tax reforms on the field that were canceled in the last few days.


food products

segment jumped at a rate of 1.80% in the volume of sales (in money) against the figure of the consumer price index that jumped at a rate of 3.30%.


household products

segment jumped by 3.10% in the volume of sales (in money) and the price index figure stands at 11.90% here too there is a direct effect of the imposition of the tax on disposable utensils, which is also subject to change these days.


personal care products

segment jumped at a rate of 1.90% against the consumer price index which stands at 2.70%

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Maybe it's bad for the environment, but it's good for the ultra-Orthodox family's pocket: Bezalel Schmutrich cancels the tax that makes it more expensive for ultra-Orthodox to shop at the supermarket (Photo: Reuven Castro)

HDP and sweets: the ultra-Orthodox paid dearly

The marketing chains in the ultra-Orthodox sector show a significantly high figure: the jump for them is more than double the national average (which, as mentioned, stands at 2.70%) in the ultra-Orthodox sector the increase is 5.60% - and from this we can understand the significance of the imposition of the tax on sugary drinks and disposable utensils for the consumer the orthodox

Despite this, there was no noticeable decrease in consumption among the ultra-Orthodox, and it is possible that the reason is that no organized party in the sector joined the protest, which was conducted mostly on social networks, which are consumed less among this public.

The major manufacturers and importers have exceeded the consumer target, but have their sales decreased or increased? (Photo: ShutterStock)

The one that goes up and the one that goes down

In the background of the discussions of the Ministries of Finance and the Economy regarding a significant intervention that would damage the power of the importers and large producers, the following figure is nothing short of amazing: despite a seemingly free market where hundreds of small food producers operate, the 20 largest producers and importers hold 62.40% of all sales and commercial activity in the Israeli market (food, toiletries and household utensils).

A figure that indicates a clear centralization that is getting stronger with the acquisitions and mergers of huge companies and funds.

Despite this generalization, a specific interpretation of the data can explain some phenomena, for example the increase in revenues of


and Coca-Cola, can be attributed to the tax that made their products more expensive.

On the other hand, the sharp decrease in


's turnover can perhaps be attributed to a consumer boycott of some of its prominent products - and that of


, to the salmonella crisis that resulted in a decrease of hundreds of millions in the company's revenues in the candy segment.

Here are the data of the 11 largest manufacturers and importers of food and toiletries in Israel: The



shows an increase of 0.20%

The Strauss group shows a significant decrease of 6.20% - The



shows an increase of 0.20%

The Central Beverage Company

(Coca Cola) shows an increase of 8.00% The



shows an increase of 4.00%

Unilever shows a decrease of 5.20% -

the manufacturer


shows an increase of 0.90%

Hogla Kimberly

shows a

decrease of 3.70% - the



shows a decrease of 10.50% -


shows a

jump of 5.70%

The Tempo beverage producer shows a jump of 9.80%

The writer is the CEO of the Retail Research Institute

  • Of money

  • consumption


  • supermarket

  • Strauss

  • yield

  • net

  • diplomat

  • Stornext

  • Cost of living

Source: walla

All business articles on 2023-01-29

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Life/Entertain 2023-01-15T10:59:25.381Z

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