Leading Israeli food manufacturer Strauss has announced that it will raise the price of several of its products on December 19, raising the average cost of all Strauss products by 2.9%. Directly affected products will include dairy products, dips, salty snacks and sweets.
Strauss stated that the increase in price comes "following a tens of percent increase in the prices of raw materials, energy, packaging and other [resources], the extent of which is estimated to have an impact of approximately NIS 300 million.”
A rough year for Strauss
The price rise comes hot on the heels of Strauss’ return of its milk chocolate products to grocery store shelves following a six-month absence due to salmonella recalls.
Despite this, the manufacturer has managed to maintain a hefty amount of Israeli market share, likely due to its overwhelming brand recognition and decades of momentum.
“I find it astonishing. Strauss was off the shelves and the shelves were accumulating dust, and I was surprised that the vacuum basically maintained itself,” remarked Dr. Alexander Coman, from the Faculty of Management at Tel Aviv University. “There are so many players [in the chocolate space] you can find all over the world, and they were so scared of Strauss that they did not fill in the vacuum. I mean, they did it, but to a minimal extent.”
“There are so many players [in the chocolate space] you can find all over the world, and they were so scared of Strauss that they did not fill in the vacuum. I mean, they did it, but to a minimal extent.”Alexander Coman
With that tenacity and market control in mind, it’s unlikely that Strauss will suffer much from the cost increase, as consumers could be likely to stick with the brand despite its slightly higher price tag.