One week into the boycott of Tnuva Food Industries Ltd. dairy products, there has been a fall in the company's sales of dairy products, as well as a rise in sales by Tnuva's competitors, according to the Nielsen survey “IDF Radio" (Galei Zahal) has reported.
The sharpest fall in Tnuva sales was in chocolate milk - 21.3%. Milk sales went down 14.4% and cottage cheese 15.5%. On the other hand, Strauss Group Ltd. (TASE:STRS) cottage cheese sales jumped almost 40%.
The Israeli student unions began a boycott of Tnuva dairy products that will continue until the Jewish New Year (September 28). The boycotters claim that Tnuva frequently raises prices for no reason.
There are tens of thousands of members on the boycott's Facebook page, which is calling on everyone to boycott dairy products produced by Tnuva, which controls more than 50% of the dairy market in Israel.
Tnuva CEO Arik Shor said last week that the student unions' boycott was unfair. "There is a feeling that someone played Russian roulette and landed on us by chance," Shor said. "I was very disappointed to hear of it because of all the other companies, none is as Israeli as we are. We import nothing and rely only on domestic agriculture."
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2011
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