March 4, 2013

Matzoh May be Lost ÒLoss LeaderÓ

NEW YORK — The age of using Matzoh as a “loss leader” may be rapidly coming to an end as many chains seemed to have changed their policy of offering Matzoh as a loss leader for specific amount purchases. This year, for example, Shoprite is offering the free 5 lb. box of Matzoh but only with $50 of Kosher for Passover products or two boxes for $100 of Passover foods purchased. 

In the past, the Matzoh was offered for the purchase of any food, even if not kosher for Passover. Some stores are no longer offering the promotion altogether but selling the 5 lb. boxes for at least $7. The change is good news for Matzoh manufacturers who were often at the mercy of retailers pushing the manufacturers for bargains. Early indications are that Matzoh sales are well ahead of last year despite these changes. Prices of Matzoh seemed to have increased across the board, including Israeli Matzoh and the hand-made shmurah which in most cases has risen by at least $1.00 a lb. 

At least one source wondered out loud why Matzoh prices have risen when the price of flour has in general declined. But the Matzoh bakers say that in the case of the shmurah (closely guarded flour from inception) costs have actually risen.