Osem Nestlé and Unilever Join Wave of Price Increases Amidst the Global Challenges

In a move reflective of the challenging economic landscape, Osem Nestlé and Unilever have announced price hikes on a range of products starting March 1. Osem Nestlé's price adjustments will affect popular items such as Sabar salads, Tivol products, Bonjour pastries, Osem ketchup, noodles for soup, sauces, cookies, and chocolate-based products like Apropos and Kitkat. The increases vary between 3% and 9%, with some products seeing an 8%-5% rise.

Osem Nestlé emphasized that this adjustment pertains to around 14% of its total product offerings, primarily those produced in industrial plants in Kiryat Gat and Sderot MK in the south. The company justified the move by citing significant cumulative price increases and mentioned that the adjustment is a partial and moderate response to the ongoing challenges.

This marks the third price increase for Osem Nestlé within a year and a half, following adjustments in February and May 2023. The company had previously raised prices on Asam pasta, sauces, and seasoning soups twice in 2023, with an average increase of 4.5%. In the second round of increases in 2023, other products such as Materna, Coffee Tasters Choice, Nestlé cereal, Gerber, and Purina products were affected.

Unilever also announced price hikes, affecting its chocolate and ice cream products, with increases of up to 15% starting March 1. Products like Magnum, Krambo, Chocobo, Cornetto, Tamekor, Goodies, Time Out ice cream snack, Bomba, and banana/chocolate-coated items will be impacted. Strauss ice cream products, Rose of the Galilee chocolate, and Click snacks are also included in the price adjustments, ranging from 4.7% to 15%.

Both Osem Nestlé and Unilever's decisions come on a day when several other food and consumer product companies, including Strauss and Stavitz, are implementing price increases. While marketing chains still hold inventory at previous prices, there is speculation that they may absorb some of the increases and possibly pass others on to consumers.

Unilever explained its decision, citing substantial increases in the prices of cocoa and sugar in recent months. The company stated that despite efforts to minimize the impact, it is no longer feasible to absorb rising production costs, resulting in an average price increase rate of 9.7% for chocolate and ice cream categories.

These price adjustments reflect the broader challenges faced by companies amidst global economic uncertainties and rising commodity costs. Consumers may brace themselves for potential cascading effects on the overall cost of living.