As the Purim holiday approaches, consumers are attracted by special offers on Strauss chocolate bars.
Retailers have informed "Globes" that the boycott against Strauss Group Ltd. (TASE:STRS) is not hurting the company due to special offers on chocolate bars for Purim. During the Purim holiday, which falls at the end of next week, Jews traditionally send children Mishloach Manot gift packages of chocolates and candies. One chain reported that sales of Strauss's Elite chocolate bar were up 400% in recent days compared with the week before the consumer boycott.
One retail store manager told "Globes," "The boycott tried to hit Strauss-Elite just as it was starting its Purim special offers and when you give attractive offers to Israeli consumers nothing else interests them."
Retailers criticized Strauss today claiming that stores' profit on the food company's products is especially low and in some chains is just 16-17%. Profit on Osem Investments Ltd. (controlled by Nestle (SWX:NESN)) (TASE: OSEM) is between 26-27%.
Published by Globes, Israel business news - www.globes-online.com - on February 26, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
Globes' correspondent and Ilanit Hayut