Strauss CEO says most snacks are cheaper in Israel

In the aftermath of the media maelstrom over the substantial difference in price between a Pesek Zman candy bar in Israel and abroad, Strauss Group CEO Zion Balas reacted Wednesday to the charges against his company, maintaining that the Pesek Zman case was the exception rather than the rule.

In a letter to the Strauss management, protesters had objected to the price of the Pesek Zman candy bar after pictures posted on Facebook showed the chocolate wafer on sale in the US for 69 cents (about NIS 2.80) whereas the same product sells for more than NIS 6.00 in Israel (about $1.50).

Speaking to TheMarker, Balas said that Strauss’s exports to foreign markets amount to NIS 35-40 million, less than one percent of its turnover. Out of 180 products which are exported, he said, only 10 – mostly chocolate wafers and snacks whose sales amount to several million shekels annually – are more expensive in Israel than abroad. In all other cases, Israeli retailers buy the products at a price that is 20 percent lower.

“What we have here is an idea and a strategy concerning entering a new market and trying to widen the scope of our exports so that we can keep growing, expand the work in Israeli factories and hire more people. We thought we could offer an added value in the snack department, as our high kashrut level gives us a competitive edge,” Balas was quoted as saying.

In response to allegations that Strauss was taking advantage of the relative lack of competition in the Israeli snack and sweets market, Balas told The Marker that “the Israeli chocolate and snack market is very competitive. International snack brands are imported and the market is open. We welcome competition, because we believe we manufacture the highest-quality products.”

Responding to Balas’ comments, Interior Minister Eli Yishai said Wednesday that it’s up to the state to remove barriers to imports and to lower taxes for manufacturers.