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Diplomat's deception: some products are expected to become more expensive by tens of percent

2024-04-11T03:22:58.780Z

Highlights: The giant company, which ended 2023 with an improved profit of NIS 80 million and even distributed a dividend, announced a 4% price increase, but in practice the prices of some products will rise at a much higher rate. One of the examples is the "Milke" chocolate bars, which will become more expensive on May 1 between 8% and 15%. The networks say that Diplomat is not sending the full list of price increases now, in order to curb the attack in the media. "They have already prepared the ground for this price increase in their latest reports, so here, they keep the promise quickly," said a retailer to Walla. The company owns the best-selling brands in each category, including Pampers, Heinz, Gillette, Tuna Star Kits, Pringles, Wella, Kikkoman, Jacobs, Tampax, Fairey, Ariel and much more. It turns out that the relatively moderate price increase she announced is a kind of eye work.


The giant company, which ended 2023 with an improved profit of NIS 80 million and even distributed a dividend, announced a 4% price increase, but in practice the prices of some products will rise at a much higher rate


In the video: Dr. Hezi Gur Mizrahi in an interview with Liat Ron in Vala We resolved the discount for the shopping basket for Passover/Walla Studio

Those who read the emotional letter sent in early February by Diplomat Chairman Noam Weiman to Economy Minister Nir Barkat, might have thought that it was the righteous of the generation, who are being treated for no reason.



In the letter obtained by Walla, Weiman expressed his displeasure at Barkat's threat to embarrass society through bullying Regulatory, if you don't announce the price reduction in the products you raised during the war.



"There is no justification for threatening the company in the course of regulatory shaming or other moves," accepted the offended Kebal Weiman. "It was right to point to a diplomat, as an example of a company that went under the stretcher in these difficult days With the people of Israel, both in curbing price increases and in mobilizing while still in the reserves at the front, volunteering at the rear, and making generous donations as part of the war effort."

And now two months have passed, and a diplomat threw the stretcher on the floor with all the people of Israel, and announced yesterday her intention to raise prices immediately after Passover. In the letter she sent to the marketing chains, she wrote that the average increase in toiletries will be 3.5% and in food 4%.



Recall that Diplomat owns the best-selling brands in each category, including Pampers, Heinz, Gillette, Tuna Star Kits, Pringles, Wella, Kikkoman, Jacobs, Tampax, Fairey, Ariel and much more.



It turns out that the relatively moderate price increase she announced is a kind of eye work. In a conversation with the marketing chains, we learned that in oral conversations with Diplomat's agents, the category managers were told that there would be products whose prices would increase by 25% and 30%, and when weighing products whose prices would not increase, they would reach a single-digit average rate of increases, which would be high from 4%

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One of the examples is the "Milke" chocolate bars, which will become more expensive on May 1 between 8% and 15%, while the Oreo products will not become more expensive at all. The networks say that Diplomat is not sending the full list of price increases now, in order to curb the attack in the media.



"They will probably do this on Passover, when no one will notice," said a retailer to Walla. "They have already prepared the ground for this price increase in their latest reports, so here, they keep the promise quickly."

Weiman's "entering under the stretcher" in his letter takes on a more bitter taste, in light of the latest reports published by the company, which were very beautiful, to say the least. Although it froze the price increases that were supposed to take effect after Simchat Torah, because of the war, miraculously Diplomat was able to to improve its results for 2023, when the company's net profit rose to 80 million shekels instead of 76 million shekels in 2022, and even "succeeded" in distributing a dividend of 40 million shekels.



Am Weiman calls the tour he is doing on the public of the reserve servants, the evacuees and those who are trying to keep The head above water, "entering under the stretcher", the citizens of Israel are giving up on his shoulder. Do not go under the stretcher and do not raise prices.

Source: walla

All business articles on 2024-04-11

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