Iconic Krembo among Unilever products set for price hike as consumer woes continue
Increase to affect range of products, including breakfast cereals and toiletries, starting November 1, but chocolate-coated marshmallow treat singled out for October price increase
Major food manufacturer Unilever announced Monday that it plans to raise the prices of a wide range of its products, including a popular range of breakfast cereals and the iconic Krembo treat.
In a statement to retailers, Unilever said it would increase prices from November 1, but Krembo prices would go up earlier — starting October 2.
It was unclear why the chocolate-coated marshmallow treat was singled out for an earlier increase.
According to the statement, Unilever, the country’s sixth-largest consumer goods manufacturer, said it was forced to raise prices after a “continuous increase in the various costs” associated with manufacturing.
Unilever said it has done everything possible to ensure the price increase was as limited as possible, and the raised prices “do not reflect the full scale of the cost increase in recent years, and Unilever will continue to absorb part of these costs.”
Among the brands slated for a price increase are Klik chocolates, Strauss ice cream products such as Magnums, Krembo, Telma breakfast cereals, Knorr products, Dove toiletries, Hellmann’s mayonnaise, and others.
Unilever — also the parent company of Ben and Jerry’s — is the latest major food manufacturer to announce price hikes in recent months, including on staple bread and milk products whose prices are largely controlled by the state.
Diplomat, which is a top importer and distributor of brands including Starkist tuna, Kellogg’s products, Oreos, Pringles, Heinz ketchup, Skippy peanut butter and a range of hygiene and cleaning products, initially announced a price hike, but agreed to delay the increase until after October’s Jewish holidays amid public outcry.
Fellow import and distribution giants Kimberly Clark Israel — behind brands such as Kleenex, Huggies, and Kotex — and Schestowitz, which distributes products from Oatly, Barilla, Colgate, and Palmolive, also announced price hikes in July.
A survey released by the Israel Democracy Institute in August found that the economy is the most pressing issue for November’s upcoming election, with 31 percent of respondents saying the economy would be the most influential factor in casting their vote.
Israel’s consumer price index (CPI), a measure of inflation that tracks the average cost of household goods like food, clothing, and transportation, is growing 1.1% per month.
The country’s cost of living has been soaring recently, as inflation passes 5 percent and housing prices rose 17.8% in the past year alone. Last year, Israel’s commercial capital Tel Aviv was crowned the world’s most expensive city.
August’s CPI is set for release on Thursday. Expectations are that inflation will have slowed down, largely due to a recent drop in fuel prices.
Times of Israel staff contributed to this report.
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