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Israeli Foodmaker Strauss To Raise Prices, Cut Costs Further

By Reuters
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Israeli Foodmaker Strauss To Raise Prices, Cut Costs Further

Israeli foodmaker Strauss Group said it would raise some prices due to the higher cost of items such as tahini and olive oil, and expand a cost cutting programme to save up to 55 million shekels (€13.4 million) a year.

Strauss, one of the country's largest food producers with a 12% market share, said it would reduce administrative roles but employees who were evacuated from their homes or those serving in military reserves as a result of Israel's war with Hamas would not be included.

It said sharp increases in the prices of raw materials in the last year, including an 88% jump for cocoa butter and large gains for tahini, sugar and olive oil, were costing the company more than 100 million shekels a year.

Price Increases

Strauss added that the prices of about a quarter of its products, such as hummus, salty snacks and chocolate, will rise an average of 1.7% from 1 February, but the other 75%, including dairy items, coffee, honey and fresh salads, would be priced the same.

"The price increases reflect the minimum necessary," said chief executive Shai Babad. "The focus and streamlining moves within the company will allow us to continue investing in infrastructure and future growth."

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He said Strauss invested hundreds of millions of shekels in its domestic supply chain and production sites in Israel in 2023.

"We will continue doing so this year as well based on our commitment to produce food security in general, and in times of war in particular," he added.

In December 2022, the company raised prices by an average of 2.9%, citing a spike in raw materials and other costs.

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