Today (Thursday), the Strauss company is raising the prices of its products by 2.9 percent on some of the dairy products, salads, salty snacks, sweets and Yad Mordechai. This is after 12 years in which it avoided raising prices in Israel.
However, the company will not increase the price of a variety of products including: all Elite coffee products,
cottage and symphony cheeses, some of Elite's chocolate bars, olive oil and others.
Also, it is important to emphasize that the price increase that the company is currently implementing is a small part of the total price increases that the company is experiencing.
The increase in price, which will take effect on December 19, is due, among other things, to the increase in the prices of raw materials and inputs in Israel and in the world, chiefly the prices of milk, sugar, oils, cocoa, energy and packaging at rates of more than tens of percent in the last two years.
For example, the target price of milk has increased in the last two years by nearly 30%, the prices of corn, wheat and soybean oil have increased in the last two years by approximately 200%;
The price of oil has increased in the last two years by about 70%, electricity prices in Israel have increased by about 10% and are expected to increase by another 8.2% soon, packaging materials have increased by up to 45% in the last two and a half years.
Also, the price of sugar has increased by about 140% in two years and cocoa has become more expensive by about 125% in the last two years.
The United Nations food price index reflects a 135% increase from the pre-corona period to today. Also, the Elite Coffee chain is updating some of its products.
"This is not a simple move"
The company would like to clarify that it took care to take all the necessary steps to ensure a complete separation between the recall damages, as a result of the stoppage of production at the Naf HaGilil candy factory, and the price increases imposed on the company as a result of inflation.
It is important to emphasize that the price increase that the company is making now constitutes a small part of the total price increases that the company is absorbing.
Eyal Dror, CEO of Strauss Israel: "It is clear to us that this is not a simple move and that dealing with the cost of living affects every household in Israel.
Along with this, we believe that carrying out a proportional price update is a condition for maintaining a balance between the needs of the public, the company's employees, its suppliers, its customers and the many public investors - the pension funds and provident funds - in an environment where the high inflation in the world and in Israel is clear and known to all.
"Over the past 12 years, Strauss has made many moves, including significant streamlining moves. During these years, the company has absorbed the increases in the prices of raw materials. Recently, we even made painful streamlining moves that included layoffs. However, due to the high inflation rates in Israel and around the world and the rising prices of raw materials and many inputs , and in light of the expectation that this trend will continue in the coming months as well - we are forced to announce the update of some of our products to retailers, which compensates for a small part of the total price increases suffered by the company."
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