Unilever raises prices by up to 17%. The company decided to reduce the weight of the products in packaging, without changing the price accordingly; Among the products that will rise are: Cornflakes Pillow and Chocolate Click. The reason, according to the company: an increase in production inputs.
The increase will be done by reducing the weight of the products in the packaging, without changing the price accordingly.
Among the top products: Cornflakes pillows, which retail prices will rise by 9%; Cornflakes Coconut to Increase by 15%: Series of Chocolate Products to Increase by 15%, and More. Unilever claims that prices are rising because of the increase in production in recent years, including a significant increase in wages.
"In recent years, the company has absorbed the increase in inputs and has taken streamlining actions to avoid further price increases. The price increase was done after a thorough examination, in a number of limited products and as a last resort, and does not embody the full increase in inputs," Unilever reasoned with its retailers.
This is Unilever's second price hike, after the August 2018 increase in the Strauss ice cream carbo price by 7.5%. Even then, Gabriel reasoned the decision to "dramatically erode the profitability of its production in recent years, which resulted, among other things, from an increase in the production workers' wages and rendered the production of crumbs worthless."
Last month, Unilever announced that at the end of six and a half years, Anat Gabriel will retire from the position of Unilever Israel CEO. The products are also not contaminated, and Unilever has faced a continuing loss of an important sales platform, following a business dispute with Shufersal - which has taken its products off the shelvesץ