Boycott brings down cottage cheese prices

Shufersal, Mega and other chains have lowered the price of cottage cheese and other white cheese spreads.

The consumer boycott on Facebook continues to succeed: Retail chain Shufersal Ltd. (TASE:SAE) today reports that it has lowered the price of cottage cheese to NIS 5.90. Shufersal will also continue its two for ten shekels sale on all types of cottage cheese and white spread cheeses.

The cottage cheese storm and the Facebook protest have made their mark: Shufersal announced that the new price for a container does not have a time limitation, and is valid with purchases of any amount, and at all Shufersal branches. Yesterday, Nochi Dankner, Shufersal's controlling shareholder, called for a 20%-30% reduction in prices for basic food products.

Shufersal CEO Richard Hunter said today that, "Shufersal has always made an effort to listen to its customers. Already two weeks ago we began a sale of buy one and get one free for all types of cottage cheese, and when that sale comes to an end, we will continue with a 2 for NIS 10 deal, which will include, for the first time, all types of white spread cheeses. We will continue to do everything in our power to lower shopping prices for our customers."

"Globes" wrote yesterday that the retail chains could not stand on the side when the cottage cheese protest broke out. Some of them immediately implemented sales, whether for the public relations spin or to take a stand: "We are on the side of the consumer."

Mega Retail also said last week that it would lower cottage and white cheese prices for Tnuva Food Industries Ltd., Strauss Group Ltd. (TASE:STRS) and Tara to NIS 5.49. Mega also requested that the producers lower prices accordingly, since the new price was lower than the price Mega was paying to them. Mega (Blue Square) CEO Zeev Vurembrand said that such a price would be "acceptable and fair to all parties". In an interview with "Globes," Kimat Chinam owner Adi Zim also called for a lowering of prices. He said that Tnuva must lower dairy product prices by 20%-30%.

Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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