Unilever Israel to raise prices by up to 6%

Unilever Israel's products include Telma breakfast cereals and mayonnaise and Knorr soups.

Unilever Israel Ltd. will raise prices for a ranges of its brands by 5-6% after the Sukkot holiday.

In a statement today, the company said, "In consideration of consumers, the rise in prices will come into effect after the High Holidays." It added, "The rise in prices is due to the steady increase in production inputs and raw materials."

Unilever Israel cites a 15% rise in the price of oil (a component of packaging and plastics), a 14% rise in the price of gas, a 27% rise in water rates and a 33% rise in electricity rates. It also mentioned droughts in the US, China, and parts of Europe, which have created shortages of grains and raised sharply prices of agricultural commodities. The price of corn has risen 60%, the price of wheat is up 50%, and the price of soy beans are up 20%. The rise in the shekel-dollar exchange rate is a contributory factor to rise in prices of inputs.

Unilever has absorbed the rising prices for inputs and avoided raising prices for its products for a long time. "However, at the point, the company can no longer continue to absorb these rising prices. The rise in prices is negligible compared with the rise in prices of inputs, and even after the price hike, Unilever will continue to absorb most of the rising prices for raw materials and manufacturing inputs," said the company.

The social protest group Israel is Dear to Us said in response, "The Israeli public can now use its consumer-civic power to teach Unilever and the other food companies a lesson: a company that raises prices - we won't buy its products. We have no doubt that the public isn't stupid, and the public is no longer willing to pay gouging prices for Telma breakfast cereals and mayonnaise or Knorr soup powders. Ahead of Rosh Hashana, the public will buy wisely and vote against the government and the food barons, through the pocketbook. Expensive goods will stay on the shelf. This year, we are reducing consumption and teaching the tycoons a lesson they won't forget."

Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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