Strauss announces price hikes of up to 6% on coffee, snacks and olive oil

Firm says increase needed to deal with rising costs of raw materials and predicted jumps in production costs in coming months

View of the Strauss Elite candy factory in Nof Hagalil, northern Israel, April 28, 2022. (David Cohen/FLASH90)
View of the Strauss Elite candy factory in Nof Hagalil, northern Israel, April 28, 2022. (David Cohen/FLASH90)

Food manufacturer Strauss said Monday it was raising prices of some products next month, half a year after a hike on a range of other items.

The price hikes will be as high as 6 percent on some items but will average at 1.4%. The new costs will go into effect on June 4.

Products affected include instant coffee, a range of sweet snacks, Splendid brand chocolate, Cheetos, potato chips and Yad Mordechai olive oil.

Strauss said it needed to raise its prices due to the increasing costs of raw materials and the expectation that costs will increase in the coming months.

The company said the hike will only affect products that haven’t seen their prices raised in the past 12 years and will not affect those that were raised in December.

Among the products that were affected in December were dairy items, spreads, snacks and honey.

The Strauss Group’s offices in Karmiel, northern Israel. (Michael Giladi/Flash90)

Last year, Strauss was forced to conduct a massive recall of numerous popular chocolate products and shut down its factory in northern Israel due to concerns about salmonella contamination.

Following a subsequent audit conducted by the Health Ministry in August, Strauss received approval for a gradual return to operations, and the products began to appear on shelves again in November.

Along with much of the world, Israeli consumers have felt the pinch of rising prices in nearly every consumer category.

Food prices in Israel have risen 50% over the past two decades and are 25%-80% above the OECD average, with dairy products, soft drinks, and grain-based products particularly expensive (as of 2017 data, according to the OECD).

In early May, it was announced that regulated dairy products would see a rise of over 9% as part of an expected 16% total increase across three years. Dairy giant Tnuva also raised the prices of its unregulated products by an average of 4.65%, with some products set to increase by over 9% mainly due to the increase in the price of raw milk.

Last week, French supermarket chain Carrefour opened its first 50 branches across Israel at an investment of NIS 250 million ($70 million), with observers hoping the move will spur much-desired competition in Israel’s overly concentrated food retail market to help bring down the cost of living.

The government has faced widespread criticism that it is not dealing with the cost of living crisis, instead focusing on its controversial plans to overhaul the judiciary.

Sharon Wrobel contributed to this report.

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