A year ago they collected the products from the shelves, then closed the factory and begged us to forget and return to the familiar and beloved flavors, now they are raising prices (Photo: Reuven Castro)
Anyone who thought about relaxing a bit from the news with a cup of instant coffee, especially if he drinks it with milk, is invited to recalculate his route, because only a week after its announcement about the increase in the price of dairy products, Strauss announces that following further increases in the prices of raw materials, packaging and industrial inputs, and after significant streamlining measures, it has decided to increase the prices of a number of well-known products.
According to the company, this is a "moderate update" of products in which the company has not made a price increase in the past 12 years and were not included in the price increase made in December 2022.
The price update will be made on Elite products:
instant coffee, freeze-dried coffee, capsules, sweet snacks, splendid, cytos, potato chips and Yad Mordechai olive oil. The update is at an average rate of 1.4% and will include a maximum increase of up to 6% for a single product.
The price increase for retailers will take effect on June 4, 6, and according to Strauss, it covers "a small part of the total ongoing price increases that the company is absorbing."
Olive oil: If you want to add Yad Mordechai's to salads on Shavuot, get ready to pay more (Photo: ShutterStock)
Why have prices increased? Strauss provides some of the data
Strauss shares some of the inputs that have become more expensive, which have caused Karwa to increase prices:
• The price of robusta green coffee has risen by 86% over the past three years, and has risen by 2022% since December 45. The price of arabica has risen by 51% over the past three years and by 2022% from December 20.
The price of crude sugar has increased by 11.03% since the beginning of the year, and the price of white sugar has increased by 13.67%.
The price of cocoa increased by 6.54%.
Corn prices increased by 37%.
• Oil prices increased by 50%.
The minimum wage was revised by 5.1 percent in April.
Strauss prefers not to update on other factors in its calculation, such as a sharp decline in sea freight prices since the height of the COVID-12 pandemic, an increase in labor productivity (in the economy as a whole) that is higher than the increase in the average wage, and a marked reduction in the prices of other raw materials used in some of the company's products.
The company said: The current price revision was made out of necessity and in view of additional dramatic increases in raw material prices in recent months, and in view of the expectation that this trend will continue in the coming months as well. It is clear to us that this is not a simple move and that dealing with the cost of living affects every home in Israel. We have done everything possible to ensure that the price revision will be specific and proportionate and will include only items in which there has been no price increase during the past <> years. The price revision that is carried out compensates for a small part of the total price increases that the company absorbs.
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- Strauss
- Elite
- Cost of Living
- Rising prices
