The Israel division of Kimberly-Clark has announced it will raise the price of most of its products to retail chains by 5.5 percent to 9.6 percent.
The company sent a letter on Monday morning (July 18) to retail chains in the Jewish State, saying the new prices will take effect on August 14, according to the haredi news outlet, B’Cheder Ha’Haredim.
Among the products to be affected by the price hike are basic necessities such as diapers, wipes, toilet paper, hygiene & care products and home cleaning supplies.
Large Families Hit Hardest
The news comes as a particularly harsh blow to large families with small children, as the company’s products include such brands as Kleenex, Ily, Molett, Titulim, Huggies and Nikol.
Price of Israel’s Main Food Staple, Bread, Rises 20% This Sunday
“In light of the continuing rise in energy prices, imports of goods and maritime transport, while continuing to increase tens of percent in the prices of raw materials of products (especially pulp, absorbent paper for diapers and more) the company has decided to raise its prices,” said the letter sent by Kimberly-Clark Israel CEO Tal Raban.
“We would like to emphasize that even after updating prices to retailers, the company still absorbs a significant part of the increase in the prices of products listed above,” he added.
Kimberly-Clark is an $18 billion global corporation that has been in operation for more than 145 years.
Just a couple of weeks ago, mammoth distributor Diplomat also announced an impending price hike, projected to raise the cost of popular brands imported from abroad such as Tide, Gillette, Starkist, Heinz, illy, Old Spice, Pampers, Wella, Pringles, Mazola, Kikkoman, Lotus, Oreo, Milka and Jacobs, among others.
Israeli Family Life Getting Harder
One year ago, the Israeli government passed a purchase tax on disposable plastic utensils that literally doubled the price of plastic plates, cups, cutlery and straws.
The legislation, aimed at reducing the use of such items, instead resulted in a crunch for large families, particularly in the haredi sector where disposables could be used as needed for milk or meat meals and without the need to wash them.
Such families nowadays are faced with Hobson’s Choice: either pay double for convenient disposables or pay nearly as much for the increased use of water to wash the reusable dishes.
Either way, large Israeli families have had a tough year – and now they are facing higher prices on essential hygiene products, in addition to increased prices imposed in recent weeks on eggs, dairy products, electricity, gasoline and water, and an impending rise in the price of the most basic staple of all: bread.
Bread Price Hike on Hold – For Now
The largest bakery in the country – Angel Bakery – last week informed retail chains that the price of its unregulated bread would be increased by 8 to 12 percent.
An official announcement quickly followed, with Economy and Industry Minister Orna Barbivai blaming the impending price hike on an increase in the global price of wheat and flour due to Russia’s invasion of Ukraine — one of the world’s main exporters of grain.
Some Israeli news outlets predicted price increases as high as 36 percent for the basic family staple.
But on Sunday, Prime Minister Yair Lapid met with Barbivai to discuss the impending 10 to 20 percent increase in the price of a basic loaf of bread.
Participating in the discussion were Agriculture and Rural Development Minister Oded Forer, Welfare and Social Affairs Minister Meir Cohen, Justice Minister Gideon Saar, chief of the Prime Minister’s staff Dani Vesely, Prime Minister’s Office Director General Naama Schultz, Economy and Industry Ministry Director General Ron Malka, Finance Ministry Accountant General Yali Rothenberg, Finance Ministry Budget Director Yogev Gradus, Prime Minister’s Office Deputy Director General for Economics and Infrastructure Amir Barkan and other professional officials.
Several economic and legislative proposals were raised, including ways to make it possible to reach agreement.
Prime Minister Lapid instructed the Finance Ministry Budget Director to return by Wednesday for an additional discussion, with a proposal on the optimal working plan for halting the increase in the price of a basic loaf of bread.
