"The cost of living protest in Israel won. We have channeled the price cuts into three types of products: packaged yellow cheeses, white cheeses, and ten types of puddings. This is a consumer-supporting pricing policy," said Tnuva Food Industries Ltd. CEO Arik Schor today.
Schor announced that Tnuva would publish its financial report for 2010 and unveiled a new pricelist, following the resignation of chairwoman Zehavit Cohen, the CEO of Apax Partners Israel. The new pricelist shows reductions of 15% in prices for yellow and white cheeses.
Tnuva is cutting the price of white cheese to retailers by 13.3%; the actual reduction for consumers is 15%, with the recommended price of a 250-gram container of white cheese set at NIS 6.30. The recommended price is, however, 26% higher than the Rosh Hashana (Jewish New Year) discounts of NIS 10 for a twin pack of cottage cheese or white cheese.
Tnuva's new recommended prices for packaged yellow cheeses are cut 5-7%, depending on the products. Here, too, the recommended price is 25% higher than the Rosh Hashana discount prices. Prices for packaged cheeses are also 22-65% higher than the prices of unpackaged cheeses sold at the deli counter.
Tnuva cut its prices for puddings by 7%.
When the social protest erupted, Tnuva cut its price for cottage cheese, but refused to cut the price of other products. In response to the protests and boycotts, the company instituted a policy of rolling discounts in a way to ensure that the basic price was unaffected. Strauss Group Ltd. (TASE:STRS) and Tara Dairies also announced that they are lowering prices of some of their products.
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011