Petach Tikva / IL. (sg) Following further significant increases in the prices of raw materials, packaging, and other industry inputs and after significant efficiency methods implemented, Israel’s Strauss Group Limited informs retailers of an additional moderate update in the retail price list of products for which the company has not made a price increase in the past 12 years and were not included in the price increase that took place in December 2022.
The price update will be implemented on Elite products: instant coffee, freeze-dried coffee, capsules, sweet snacks, Splendid chocolate bars, Cheetos, potato crisps and Yad Mordechai olive oil. On average prices are increased by 1.4 percent and will include a maximum increase of up to 6 percent for a single product. The company noted that the prices of the products included in the update have not been updated in the last 12 years. Dairy products and salads are also not included in the update. The price increase for retailers will come into effect on 2023/06/04. This increase in price only partially compensates for the ongoing input inflation the company is experiencing.
Here are some of the raw material price increases:
- The price of Robusta green coffee has increased in the last three years by 86 percent, and from December 2022 by 45 percent. The price of Arabica rose by 51 percent in the last three years and from December 2022 by 20 percent.
- The price of raw sugar has increased by 11.03 percent since the beginning of the year, and the price of white sugar has increased by 13.67 percent
- The price of cocoa increased by 6.54 percent since the beginning of the year
- Corn prices increased by 37 percent since the beginning of the year
- Oil prices increased by 50 percent since the beginning of the year
- The minimum wage in Israel was updated in April by an additional 5.1 percent
The company stated: The current price update follows the continued input inflation the company is facing and which is expected to 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 household in Israel. We have done as much as possible to make sure that the price update will be focused and proportionate and will only include items that have not had a price increase during the past 12 years. This price increase only partially compensates for the overall input inflation experienced in the past months.