Israelis who have gone shopping this week in any of the nation’s supermarket chains have discovered the supply chain crisis that struck the US and other countries in the aftermath of the COVID-19 pandemic is now reaching the Jewish State.
But the reasons are very different.
Items like ketchup, diapers, and other products are in short supply at best, and completely missing on some supermarket shelves due to demands by distributors for a significant price hike.
It’s the second such move since the start of the summer.
According to price index data from Stornext, sales of food and consumer goods jumped by 4.4 percent in the first nine months of 2022 – and the next report is expected to be even more dismal.
Here’s how the situation looks right now.
Tara dairy company this week raised its prices by 4.9 percent.
The move prompted the mammoth Shufersal supermarket chain to choose not to stock the products rather than offer them at the increased rate. Shufersal is the only supermarket chain in Israel to completely refuse to comply with supplier price hikes, including those from the Diplomat distributor.
By next week, Unilever Israel plans to raise the prices by up to 20 percent on most of its products, which include:
Telma Corn Flakes
Badin laundry products
Strauss ice cream products
Crembo
Dove toiletries
Pinuk toiletries
Knorr food products
Both Shufersal and Rami Levy supermarket chains are refusing to stock Crembo Strauss despite the loss in sales, due to its higher price. Crembo is usually consumed by families, including larger families where the small, previously affordable sweet treat treasured by Israeli children could easily be purchased in large quantities.
Gad dairy company plans to raise prices by 9.5 percent on its cheese, yogurt and pasta products by the end of the month.
The Sano company plans to raise prices by up to 25 percent on its disposable paper products – including toilet paper, paper towels, wipes and more).
The Diplomat company is demanding various price hikes on its Proctor & Gamble products, including:
Always feminine hygiene products
Pampers diapers (15 percent)
Similar price hikes are being demanded for:
Pantene shampoo and conditioner (23 percent)
Head & Shoulders shampoo and conditioner (23 percent)
Ariel laundry products (increase unknown)
Fairy dishwashing liquid (increase unknown)
Tide laundry products (increase unknown)
Lenor laundry products (increase unknown).
The Sugat company is demanding a 15 percent rise in the price of white sugar and various types of rice.
Ferrero Roche (you’ve seen those gold foil-wrapped chocolate balls?) is demanding a three to seven percent price hike for its Nutella and Kinder chocolate products.
Henkel wants a 10 percent increase in the price of its low-cost Hawaiian shampoo and lower lotions.
Layman Schlissel wants a 15 percent increase in the price of Lavazza coffee capsules, and a 20 percent increase in the price of Yogetta toffee candies.
Osem – Israel’s third largest food company – is reportedly also planning to submit a new price list (read: price hike) by the end of this calendar year, according to the Israel Financial Insider website.
It is believed that even more companies will raise prices after the November 1 national elections.
According to Israel Financial Insider, the Mars candy company has requested a 5 to 12 percent price hike for its chocolate bars.
In July, the Shastowitz company filed a request to raise its prices by up to 14 percent on:
Barilla pasta
Master Chef food products
Tun Rio Mera
And other products.
Kimberly-Clark filed a request in July to raise prices by up to 9.6 percent on:
Diapers
Wipes
Household cleaning products
And more.
Will the onslaught produce a consumer boycott? Stay tuned.
