Only two months after 5% soft white cheese and 38% whipping cream were included among price-controlled goods, the government is broadening its examination of Israel’s largest food corporations' profitability. Sources inform ''Globes'' that at the beginning of the month, the Ministry of Finance approached Tnuva Food Industries Ltd., Strauss Group Ltd. (TASE:STRS), the Central Bottling Company (Coca-Cola Israel), and Osem Investments Ltd. (controlled by Nestle SA (SWX:NESN)) (TASE: OSEM), requiring that they provide extensive profitability figures in different categories within two weeks. Tnuva was asked to provide profitability data for its dairy division, as well as its beef division, Adom Adom.
The Ministry of Finance has also asked for an investigation of the coffee profitability figures. Osem confirmed to "Globes" that it was asked to submit the data. It appears that with the exception of Strauss, the companies have yet to hand over the data.
This is not the first time Tnuva has been required to hand over data, though this is the first time Tnuva has been asked to report on the profitability of its beef products, and this is the first time such thorough itemizations of each product have been demanded.
The Ministry of Finance Budget Department’s Alon Messer sent a letter to the companies saying the request is part of an inter-ministerial project intended to formulate ways of reducing product prices in selected food sectors, and so the request was made to all the parties who are liable to be affected by possible steps to reduce prices.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2014
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