The ink is not yet dry on the announcement by food company Osem Investments Ltd. (TASE: OSEM) that intends to raise prices, and Central Bottling Company (Coca-Cola Israel) Ltd. today announced that it will raise prices by up to 5.7%.
Coca-Cola Israel owns leading beverages brands in Israel, including Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite, and Prigat fruit juices. Through Israel Beer Breweries Ltd., it also brews under license beer brands, including Carlsberg. The company also owns Tara Dairy.
The price hike does not include Tara Dairy at this time.
Coca-Cola Israel said in response, "Due to the sharp rise in prices of inputs, we are updating our price list by up to 5.7%. It is important to note that, in the past five years, the Consumer Price Index (CPI) has risen by 16.2%, and the CPI for food, excluding fruits and vegetables, rose by 20%, while the retail price list of our products has risen by only 11.2% (for 1.5-liter bottles).
"The new price list will come into effect in 30 days, on November 11, 2012. The current update does not include Tara Dairy products, beers (except for malts), Fuze Tea in 1.5 liter bottles, Prigat Ocean Spray, Prigat juice concentrates, Tavor wines, Smirnoff Ace vodka, and Kinley soft drinks in 1.5 liter bottles."
Published by Globes [online], Israel business news - www.globes-online.com - on October 4, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012