Osem officials on Thursday, announced price hikes on its product line ranging from 3.5% to 6.1%. The average price increase is 4.8%. Israel Radio reported that Osem officials insist this is the first price hike in at least three years. Company officials explain the new prices will go into effect on 1 November 2012 and not all of Osem’s products will be included in price hike.
· Some of the hikes include;
· Beit Hashita pickles/olives up 2.3%
· Pastas, sauces and ketchup up 3.6%
· Breakfast cereals up by 3.7%
· Tivol (soy products) up 3.7%
· Tzabar salad line up 4.1%
· Baked products up 5.6%
· Snacks up 5.8%
· Coffee up 6.1%
Officials stress that the price of Materna baby formula will not be increased. Osem management explains ingredients are becoming increasingly costly and they can no longer absorb the price increases, stating there hasn’t been a price increase in January 2011 despite the fact the cost of ingredients such as corn, soy, wheat and oil have increased dozens of percent.
Osem explains that it credits the company’s becoming increasingly efficient for the stable pricing over recent years but states at present, a price increase cannot be avoided.
(YWN – Israel Desk, Jerusalem)