The cottage cheese boycott leaders, headed by Itzik Alrov, are targeting Strauss Group Ltd. (TASE:STRS), Osem Investments Ltd. (TASE: OSEM), and Unilever Israel Ltd., demanding that they cut prices immediately or face consumer boycotts. Unilever Israel owns the Telma and Knorr food brands, Ben and Jerry's franchise, and Badin detergents, Dove soap, and Vaseline brands, among many others.
A price comparison by "Globes" found that Unilever plc/NV (LSE: UL; Euronext; UN; NYSE: UL; UN) sells its brands in Israel at substantially higher prices than in other countries.
The proposed boycotts follow Tnuva Food Industries' capitulation yesterday and its announcement that it is lowering prices of basic dairy products. Despite the announcement the cottage cheese boycott and Tel Aviv Student Union leaders are not halting their boycott of the company, and demand that it cut prices on all products.
Alrov told "Globes", "It's important to remember that this boycott is in addition to the boycott against Tnuva. We're demanding that Strauss, Osem, and Telma cut prices permanently. We want Osem to cut prices on its products, especially its flagship product Materna infant formula. It's unacceptable that a 700-gram container of Materna costs NIS 45 in some places, but NIS 70 elsewhere. Obviously, we cannot ask the public not to buy basic goods like Materna, but we can ask them not to buy other Osem products."
Alrov said that the boycotts against Strauss, Osem, and Telma had not yet begun, but that the protest leaders have sent letters to the companies asking them to lower prices on a permanent basis, so that the boycott weapon would not have to be wielded.
"Globes": What price cuts do you want?
Alrov: "30% on all food products of these three companies, and the same NIS 45 price for a can of Materna at all locations."
What's the deadline?
"We hope that they will respond to our request by the end of the Sukkot."
The week-long Sukkot holiday ends on October 20.
Published by Globes [online], Israel business news - www.globes-online.com - on October 4, 2011
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