Much has been said recently about the tension and the struggles between the suppliers and the food chains, against the background of their desire to raise prices and against the opposition of the chains. The biggest criticism was mainly towards the big companies such as Unilever and Tnuva, who decided to raise prices in the market. Those who are now joining the audit are the small suppliers.
The food company Mia manufactures and markets more than 500 products and about 1,000 items in 16 categories for the field of vitamins and nutritional supplements.
Among the products Shamia markets: legumes, rice and grains, auxiliary products for baking, spices and sweets.
Mia produces 90% of the products in Israel and manufactures products for private brands.
Ami Wertheimer, a partner in the Mia company, attacks the "Alihum" on the marketing chains in the context of the price increases.
"I think that the big increase that is being made at this time for all the marketing chains is unjustified, illogical and unfair. After all, there is nothing in the world that has not gone up by tens of percent, starting with fuel and electricity, and ending with insurance, vehicles, raw materials and transport. If they increased the cheese by 5% - They come and boycott and say 'we won't buy if you raise prices'. It's something unfair."
Ami Wertheimer, photo: Shuka Cohen
"We need to absorb"
According to Wertheimer, the comparison of the prices of supposedly similar products between Israel and abroad is also unfair. "The regulation in each country is different.
In New York there is no VAT on food and in Israel there is - already a difference of 17%. But heaven forbid if we raise the price. We have to absorb it. Then everyone will come to the marketing chains and say because of you it's the cost of living, but it's constraints and there's nothing to be done. Why don't we go out To the streets for fuel? For electricity? Why don't they boycott banks that raised interest rates?"
Wertheimer focuses the criticism on the big companies.
"What is true is that there is a lot of criticism of the big companies. After all, they dominate the market. Some of them are listed companies and you can see the profit tension from here until further notice, they are pigs. And I'm talking about the big companies, which are the five biggest companies, including Tnuva, Assem and Strauss. They are basically can absorb the price increase, but they put the marketing chains in some kind of problem. (It should be noted that not everyone who was mentioned raised prices, H.I.L). The chains cannot fold because they said they would not approve a price increase because of the media intrusion."
"There is a war in the market"
"There is a war and it affects us, the small companies. Because if they don't approve them, they don't approve the price increases for me either. But unlike them, if I don't get the price update - we won't survive. There is a situation where we will go bankrupt. Many companies They will not survive this period."
"What Unilever did in the stores now, if I do it - I finish my story and leave. I'd rather even lose money and still release goods."
Have you tried raising prices?
"We are constantly trying to raise the prices, including the private label. We are constantly in a dilemma, but we are trying because we have to. We won't stand it if we don't. I should have raised it by at least 15%. Everything around has gone up beyond the purchase prices."
Is the effect of the Russia-Ukraine war evident in the market?
"The world is in a huge spin right now because of the war in Ukraine. We market legumes. Passover will come soon, and last year due to what happened in the ports, many suppliers received goods after Passover. This year some of the products are already with us. We brought up the import of the products for Passover and it also costs money to finance - because I will only see the money in eight months. And we have a relatively stable company in the market. In my opinion, we will end the year with a loss of money, unequivocally. An increase in sales and a loss of money."
Tal Sagi, VP of Marketing and Sales of Mia and Mia Plus, added: "This is a crazy year.
Suppliers abroad don't release the goods until they pay, and it's like that for everyone. From the moment they calm down, they raise the price by dozens of percent and you have no one to talk to. You don't want to, you don't need to."
Dietary supplements in candies
The company's growth engine is its entry into the field of dietary supplements with the "Mia Plus" brand.
These are vitamins and nutritional supplements in jelly candies for adults and children, which are sold for the first time in food chains.
Among the products in the brand you can find bestsellers such as turmeric and vitamin for strengthening hair and nails, omega 3, multivitamin and more.
According to Wertheimer, "We have been in the field for 20 years and we have a factory that produces jelly candies with nutritional supplements and vitamins. Until now, we made private brands and the main work was exporting to the world. The demand for these products is increasing in the world, and the corona virus has also greatly increased the demand. The demand for vitamin D has skyrocketed We are now bringing several innovations to Israel. First of all, we are making it accessible from the pharmacy chains to the retail chains. Currently it is distributed to 700 points and it will continue to progress. In addition, we have innovation in the world as well. Until now, what has been sold are vitamins for children. We have developed a wine for adults Like collagen for hair, which until now was not sold in candies. The switch to candies makes it friendlier."
"We presented Mia Plus at an exhibition in Dubai. Who didn't come to us? Saudis, Moroccans, Algerians. People from all over the world were with us and wanted to close quickly.
Do you have any news regarding the price?
Wertheimer: "In terms of price, it's very tricky because each product stands on its own. The vitamin C is not similar to my competitor's vitamin C. There is the size of the candy, the active ingredient in the candy and more. We do bring accessibility and a good price, and in the end the chain determines the price. Like In all of Mia's products, we try to give the best prices to the consumer."
Why are the prices of vitamins in Israel much higher than abroad?
"The comparison between the regulation in the US and Israel is not a correct comparison.
Each has different expenses and different costs.
Add that it is difficult to make a comparison even in Israel between products because of the active ingredient in the product, the size of the candy, such and such dosages."
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