Suppliers informed the chains of their intention to raise prices by up to 25% by November 1st

The food chains are preparing to raise prices as early as next week. The price index of Stornext, which increased in the first 9 months of this year by 4.4% compared to the same period last year, is expected to jump in the next update, in view of the demand of various suppliers, including Sano, Unilever, Terra, Gad Dairies and Diplomat Company, to raise the prices of their products at a rate that reaches up to 25%
 Batra will raise the prices of dairy products that are not under supervision by 4.9% this coming Tuesday, Gad Dairies will raise the prices of cheese, yogurt and Nona pasta that the company markets by up to 9.5% at the end of the month, and Sano will raise the prices of paper products (toilet paper, paper towel, wipes and more) at a rate of up to 25%.
The Diplomat company, for example, is demanding a 15% increase in the prices of Proctor & Gamble products, including Ariel washing powder, Always feminine hygiene products, Pampers diapers and fruit dishwashing liquid. In addition to it, the Sogat company demands a 15% price increase on white sugar and various types of rice. The Ferrero company demands a 3-7% increase in the price of Nutella spread and Kinder products. The Henkel company is working to raise the prices of the brand's Hawaiian shampoo and shower lotions by 10%. Layman Schlissel is asking for a 15% increase in the price of Lavazza coffee capsules, claiming that it is a different and higher quality product, and 20% in Yogetta toffee candies, claiming that this is a price correction in two specific products.
The estimates in the food industry are that if until now the ones who led the price increases were small and medium-sized suppliers who could not bear the higher prices of raw materials, energy and transportation costs, and their effect on the basket was relatively small, then now the large suppliers are expected to take the reins and raise prices in a way that will jump the expenditure on Food and consumer products.
The one who has already submitted the latest price list that should come into effect as early as next week is Unilever Israel, which is seeking to raise the prices of most of its products, including Cornflex Thelma, Bedin's laundry products, Strauss ice creams, Dove and Pinok toiletries, Knorr food products and more by up to 20%. Unilever "bypassed" Diplomat which tried to raise prices in August and under the pressure of consumers, who were backed by the retailers who understood the public atmosphere, it decided to postpone the price increase after the Tishrei holidays, i.e. until next week.
According to estimates, Assem, the third largest food company, which at the beginning of the year succumbed to the pressure exerted on it when it tried to raise prices, is expected to submit new price lists towards the end of the year. Whereas the market leader Tnuva, which avoided raising the prices of non-supervised milk products, because it was caught in a crisis with the Sunfrost brand, is expected to join the wave following the jump in the price of raw milk. According to market estimates, even Strauss, which already informed about a year and a half ago in its reports that a price increase is being considered, will advance this move after it gets out of the salmonella crisis in chocolate and gets stronger.
As time passes, it seems that the resistance of the retailers is weakening, and it is doubtful that they will stop the price increases that are coming. An example of this was the behavior of the retailers regarding Unilever's demand to raise the price of Crambo Strauss at the beginning of the month. While Shufersal and Rami Levy refused to approve the demand, even at the cost of the loss of sales of the very popular seasonal product, competing chains such as Victory and Yohannoff chose to approve the demand, arguing that it is a luxury product, which has cheap alternatives and therefore there is no reason to withhold it from those who are willing to pay its high price .
The fear is that even retailers who join the fight against the price increases demanded by the suppliers will have difficulty fighting with several large suppliers at the same time. "It is possible to manage without Unilever products and even without Asam products, but the estimates are that after the elections there will be a wave of requests from large suppliers, and a blanket refusal to their demands will leave the stores without goods," explains a large retailer. The Mars candy company is waiting for a 5%-12% increase in the prices of chocolate bars, as is Shastowitz, which is waiting for the approval of the request it submitted in July for an increase of up to 14% on Barilla pasta, Master Chef food products, Tuna Rio Mera and more. Kimberly Clark (Hogel) is also still waiting for the approval of the request she submitted in July to increase the prices of diapers, wipes, household cleaning products and more by up to 9.6%. These demands are added to the requests recently submitted by Gad Dairies, which requests a price increase of up to 9.5%, Sano, which requests a price increase of up to 25% on its paper products, and Unilever, which requests a price increase of up to 15%.
Even before the wave of price increases that will be registered starting next week, it is possible to see how the price increases recorded in recent months led consumers to reduce their shopping volumes. According to Stornext data, sales of the food and consumer goods market increased in the first nine months of this year by 1.8%. However, the price index compiled by the company jumped by 4.4% during this period, so that in practice there was a real decrease of 2.5% in purchases. Considering the natural growth rate of the population, it is a decrease at a higher rate. This is without taking into account the rising prices of fresh products such as meat, chicken, fruits and vegetables, which are not measured by Storenext.