Barn raises prices because she can – and those are the reasons she beeps at us

The competition authority caused a lot of noise when it began last month investigating retail chain executives such as Itzik Aberhahn from Shufersal or Rami Levy, on suspicion of a price cartel. In practice, it turned out that the address for the Competition Authority’s claims was not the retailers, but manufacturers such as the food giant Osem.

The Nestle Barn Group, owned by the global Nestle and managed by Avi Ben Asaig, yesterday informed retailers of its intention to price a series of hundreds of food products at a rate of 3% -7% and an average of 4.6%. As the third largest food product manufacturer in Israel, Osem is leading a move that no other food manufacturer has dared to make.

Osem CEO, Avi Ben Asaig (Photo: Itzik Shokel)

The harsh media criticism has prevented this to this day. Retail chains have also made it clear that such a move at the current time is problematic. Although other manufacturers such as Snow have raised prices by 6%, this is not a large manufacturer or essential food products.

The increase in prices includes hundreds of products, including bamba, pasta, coffee tester choice, snacks, ketchup, cakes and more. If a barn does not fold and withstand public pressure, then the next in line will be dairy producers, led by Tnuva and Strauss, who will price the products under supervision following the update of the target price of milk.

Barn does this because she can afford it, and perhaps foreign ownership allows her to ignore the sounds of the public heart. Three years ago, when she dared to make a similar move, its managers were invited to the office of former Finance Minister Moshe Kahlon, and after being warned, they withdrew from the decision.

Moshe Kahlon (Photo: Nir Keidar, Flash 90)Moshe Kahlon (Photo: Nir Keidar, Flash 90)

What was true of Kahlon is different today. The wind blowing in the direction of the current finance minister Avigdor Lieberman is different, so Bassem was not afraid of making the move, which as expected was explained by the increase in costs. However, they have chosen to emphasize that Materna’s baby food products will not become more expensive.

Masem responded: “Raw materials, packaging and transportation costs have skyrocketed by tens to hundreds of percent, unparalleled in the past. “We are forced to make an update that only partially compensates for the rise in input prices.”


Source: Maariv.co.il – כלכלה בארץ by www.maariv.co.il.

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