Remember they questioned the senior executives of the economy about price coordination? They seem to have realized that you have forgotten

Avi Ben Asaig, CEO of Osem, cares for you dear Israelis. “I am a patriot and love the country where I was born,” he declared in an interview he gave exactly a year ago. In December 2020 (to journalist Meirav Krystal), adding with deep concern, sleep. This is unequivocal at the expense of Israeli industry. “

Asaig loves you dear citizens – and he is so anxious for the Israeli industry that this morning announced a price increase that will range from 3% -7% – to hundreds of the company’s products including cereals, pastas, snacks, flakes, noodles, couscous, and sauces.

Like a good patriot, White Asaig has reasons for this unreasonable and unjustified price increase: the increase in raw materials, packaging, and the increase in transportation costs by hundreds of percent, even after deducting exchange rates (which are close to the floor). But there is also a chopper: Materna prices will not rise miraculously.

The Patriot Massem, which was bought in full by the Swiss Nestlé years ago (but let’s not involve non-Jews in the discourse of Israeli lovers in any case) said in that monumental interview: “There are different countries in the world that seriously considered producing only for their countrymen. “Local industry is important for national resilience. If we rely on imports, we will lose our resilience.” So if a barn produces in the country, then what does it suddenly add to the transportation costs to the consumer?

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Celebration in the supermarket (Photo: Nati Shochat, Flash 90)

This is where the anesthetic came out of the bag. When asked if the company imports products from abroad, it turns out that the protector of Israeli industry is an importer himself: “I produce a part in Israel, but you are right, the majority imports. Why did we stop producing only in the country? Because of production viability. Because one machine in Italy produces spaghetti without stopping. For me, a different type is produced every hour. It is very inefficient. I can buy from imports much cheaper. “

Mr. Ben Asaig, Nestle – Dear Barn. When you are comfortable, you are Israeli patriots, especially when it comes to asking the government for help in reducing the labeling of products with red stickers. Why are we needed for 2015? Because it is not known what the turnover is today, since under pressure from members of the management – the Israeli one in particular – it was delisted from the Tel Aviv Stock Exchange. It is known that the market share of Nestle Barn in food sales is 7.5% of the market share, the third largest company in the country.

Avi Ben Asaig (Photo: Itzik Shokel)Avi Ben Asaig (Photo: Itzik Shokel)

Another interesting detail that is worth noting is the rate of increase in the price chosen by Ben Asaig’s people, which stands at an average price increase of 4.6%. Why was this number chosen? It can be assumed that it is related to the expected increase in electricity prices by 4.9% and the recommendation of the Consumer Prices Committee to increase the price of regulated milk by an average of approximately 5.5%. Two empirical data that in contrast to stories, true or not, about the rise in prices of raw materials and transportation for example, we can understand. Both are wonderful excuses for an excessive and unnecessary price increase, at the mercy of the regulator, no less.

Rami Levy in the Knesset's Economics Committee (Photo: Noam Moskowitz, Knesset Spokeswoman)Rami Levy in the Knesset’s Economics Committee (Photo: Noam Moskowitz, Knesset Spokeswoman)

Nestle-Osem executives evaded a parade of retail chain executives and major manufacturers summoned for questioning by the competition authority, perhaps because they managed to remain silent while everyone else spoke publicly about their desire to price products. Ben Asaig proved that he is not only an original Israeli, but also not a sucker, when he jumped the prices, straight from the jump, perhaps because he knows that the train of interrogation has long passed him by.

Let’s hope that he will not be able to escape the wrath of consumers, who will not forgive him on the face of it: on the one hand, a patriot who exalts Israeli industry and on the other hand, he does not let patriotism confuse him when he has to scrape a few more shekels from Israeli citizens.


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

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