In a surprising move that's sure to catch consumers' attention, Osem, one of Israel's largest food manufacturers, has announced significant price cuts on several products. This decision comes as a refreshing change amidst widespread inflation and rising living costs.
The company has informed retail chains that it will reduce prices by 8% to 15%, primarily focusing on breakfast cereals. Osem cites a desire to "accommodate consumers" during these challenging economic times as the driving force behind the decision.
This price reduction is set to take effect on August 1st, just a month after Osem implemented price increases of 2% to 7% on various items including snacks, pastries, and ready-made meals. The contrast between these decisions is stark and noteworthy.
Industry insiders speculate that Osem may have noticed a dip in sales following the July price hike, prompting this consumer-friendly move. The company seems keen to maintain its market share in an increasingly price-sensitive environment.
In a statement, an Osem spokesperson emphasized that this move aims to make their products more accessible year-round, not just during promotional periods. This strategy could potentially reshape how other food producers approach pricing in the current economic climate.
It's worth noting that this isn't Osem's first price adjustment this year. In January, the company raised prices by 3% to 9% on about 14% of its product line, including popular items like Tzabar salads and Kit Kat chocolate bars.
Osem's decision to lower prices on staple items like breakfast cereals could provide some much-needed relief. It remains to be seen whether other food manufacturers will follow suit, potentially triggering a shift in the Israeli food market dynamics.
For now, shoppers can look forward to more affordable breakfast options come August, thanks to this unexpected move from one of Israel's food industry giants.
* Channel 12 contributed to this article.
