October 25, 2011

Consumer Movement in Israel Gets OsemÕs Ear

Tel Aviv…Buoyed by its success to force food giant Tnuva to roll back prices on dairy products, the growing consumer movement, assisted by social media, has moved on to target Osem. According to Globes, Israel’s prestigious business publication, Osem has taken steps to avoid a threatened boycott by announcing “that it will cut the prices of 35 products by 5-10% on November 1st, and will also distribute NIS 5 coupons for Materna infant formula products.”Prices for Osem’s Materna products have come under sharp criticism from movement leaders and from Orthodox Jews who use the Cholov Yisroel and Pareve items. The cottage cheese boycott leaders are demanding Osem cut prices by 30% on Materna products. Osem will cut prices for ketchup, soup croutons, pasta, powdered chicken soup, soy source, and biscuits. As for Materna, Osem will apply the pricing model used in the US, adding coupons to 11 different infant formula products. Consumer advocates have threatened to next take on Strauss, Osem’s competitor.