Wysotsky Announces Price Increases Across Multiple Product Lines Amid Rising Costs

The Wysotsky company, a dominant player in Israel’s tea market, has announced price hikes across several of its product categories, citing rising input costs and other economic pressures. The company, which holds a commanding share of the tea market in Israel, will raise the prices of its black tea by 5% to 7%, and increase the cost of waffles and biscuits under its LAGO and BN brands by 5% to 6%. The most significant price surge, however, will come in the form of a 22% increase in baking flour.

In a statement to food chains, Wysotsky attributed the price hikes to rising costs in raw materials, including cocoa, as well as increased machine hours, production costs, and transportation expenses. "It is important to note that the company is working intensively to minimize the impact on consumers and maintain fair prices," the company said.

Wysotsky’s Market Dominance and Price Setting Power
Wysotsky, which dominates the Israeli tea market, was formally classified as a monopoly in the green tea and herbal infusion sectors by the Israeli Competition Authority in July 2023. Despite concerns over market control, the company continues to leverage its dominant position to adjust prices, with the upcoming price hikes adding to a growing list of suppliers raising costs in advance of 2024.

The Israeli tea market is valued at approximately NIS 250 million annually, though it has seen little growth in recent years. This stagnation is partly attributed to the mild winters, which have dampened demand for hot beverages. The market is divided into three main segments—green tea, herbal infusions, and black tea—with each segment accounting for roughly a third of the market share. Wysotsky has long been a key player in all three categories, with a particular focus in recent years on green tea through heavy investment in advertising and product development.

Continued Influence in the Retail Market
Wysotsky’s dominance in the tea market is significant, with the company holding an estimated 77% market share as of 2023. The company’s market control has allowed it to push higher prices compared to competing brands, with some products costing tens of percentage points more than their international counterparts. In addition to its market share, Wysotsky has utilized retail shelf arrangements and extensive advertising to reinforce its brand and maintain its pricing power.

The price increases announced by Wysotsky are part of a wider trend of inflationary pressures in Israel, as suppliers across various sectors continue to raise prices due to rising production costs and global supply chain disruptions. Consumers are likely to see higher prices on a variety of products as companies adjust to the ongoing economic climate.