Strauss Group announced an update on prices for retailers, which will take effect on January 1, 2025. According to the announcement, the prices of the company's chocolate and coffee will increase significantly.
This is the fourth price hike within a year and a half for the company, which claims the average rate of the price increase is 2.9% for all its products. However, in practice, the company's popular products, including chocolate, instant coffee, and Turkish coffee, will rise in price by up to 18%.
Strauss claims that the major increases are due to the surge in cocoa bean prices, which rose by about 120%, and coffee bean prices, which increased by 50% to 70% in the past year. The company also updated that the price adjustment will apply to about 14% of its products, emphasizing that the new prices do not reflect the full cost the company absorbs due to the rising raw material prices. In addition, Strauss will reduce the prices of Yad Mordechai olive oil by about 10%, as part of the adjustment to market prices.
Strauss stated: "The prices of coffee and cocoa raw materials have surged by hundreds of percent in recent years. Nevertheless, the update applies only to a portion of the company's chocolate and coffee products affected by the rise. The price update does not reflect the full costs of raw materials absorbed by the company."
As mentioned, Strauss' price increase will take effect at the beginning of January, which is expected to coincide with the VAT hike to 18%—a move that will increase pressure on consumers already struggling with the high cost of living. The VAT increase is expected to lead to widespread price hikes in products and services in Israel, so every citizen will feel the rising burden on their expenses—from the shopping basket to food prices, clothing, and fuel. Household expenses are expected to increase by hundreds or even thousands of shekels annually.