Israel's largest supermarket chain Shufersal Ltd. (TASE:SAE) has blinked first and agreed to Tnuva's demand to hike the prices of some of its dairy products.
Shufersal has only partially surrendered and put up the prices of a range of basic products including butter, various yellow cheeses and yoghourts, cream and tofu. Meanwhile Shufersal is refusing to hike the prices of 160 other products from Tnuva, Israel's biggest dairy including a range of other cheeses and yoghourts and delicacies.
For the past two weeks Shufersal has resolutely stood against all suppliers who raised prices, including rival dairies Tara and Gad which also hiked prices. But with many of their dairy fridges half empty and watching as customers turned to other chains where the higher price Tnuva products were stocked, Shufersal realized that it had to provide a response to consumers.
In mid-November Tnuva announced a range of price rises on its products averaging 4.7%. Rival dairies Tara and Gad hiked the prices of their products by an average of 4.9% and 9.5% respectively.
Shufersal said, "Due to the shortage of a range of dairy products and substitutes available in Shufersal branches and in order not to harm the chain's customers, Tnuva's request for a price increase was thoroughly examined - the request was only partially approved for products for which there are no substitutes in other brands."
Tnuva said it does not comment on its commercial relationships with its customers.
Published by Globes, Israel business news - en.globes.co.il - on December 6, 2022.
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