Osem raises prices by up to 7%

Osem Photo: Tamar Matsafi

The Israeli food manufacturer and distributor says it can no longer absorb the rise in commodity and shipping costs.

Israeli food manufacturer and distributor Osem Investments Ltd. has announced that it is raising the prices of its products by an average of 4.6%. In a letter sent to retailers, Nestle unit Osem reported that it is hiking the prices of its products by between 3% and 7%. Materna baby formula products will not rise in price. "This rise partially covers the major price rises of inputs and shipping," the company said.

Dozens of products in many categories will rise including salty snacks like Bamba, Bisli, Apropos, Dubonim and breakfast cereals including Cheerios, Fitness and Crunch. Other price rises include on coffee products like Nescafe and Starbucks coffee capsules as well as Tzabar Humus and Tivol vegetarian products. Also on the list are Perfecto pastas, ketchup, soup and soup powders, breadcrumbs, sauces, flour, pastry products, crackers, cookies, Gerber baby products and more.

The company said, "As you know, we have seen strong price rises globally for many months in raw material and packaging, prices and shipping costs. These are real price rises of tens of percentages (durum wheat 90%, coffee beans 80%, oils 65% and packaging materials 50%) and shipping costs have risen between 400% and 800%. To our regret, these rises continue and the financial repercussions are unprecedented in scope. After we have borne these costs for a long period, we have been forced to revise our retail price list."

Published by Globes, Israel business news - en.globes.co.il - on December 28, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

Osem Photo: Tamar Matsafi
Osem Photo: Tamar Matsafi
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