Osem Caves, Delays Price Hikes Until After Pesach

The giant Osem food company gave in to pressure not to raise prices as planned for February 1, but to wait until after Pesach, when it said it would review the matter.

The announcement followed a meeting of its senior executives with Finance Minister Avigdor Liberman, in which they presented the reasons for the planned price increases, including higher costs of raw materials and shipping.

The finance minister had been threatening action against major food producers and importers that were poised to raise prices at a time when Israeli consumers are still struggling with the financial effects of the pandemic, and as the price of gas and electricity go up.

Liberman said the pricing moves “raise concerns of the use of excess market power to rake in excess profits.”

Earlier on Tuesday, the city of Kiryat Malachi said it would stop buying products from Osem “until it reneges on its intention to raise the prices of its products.”

Mayor Eliyahu Zohar acknowledged that the municipality is not a major customer for Osem products, “but this is a moral and symbolic act.” He called on the residents of the city and other municipalities to do the same.