The price increases will begin in November when the company's 1.5-liter six-pack of water will become more expensive by 6%, while the individual bottles of various sizes will become more expensive by 4.5%; Market factors: "The company is on the shelf and has an interest in showing an increase in revenues"
The cost of living continues to hit us, in one of the best-selling products during the war: Mey Eden Water increases the price of its water bottles. In a message sent to suppliers. It says, "In the last year and a half, there have been significant increases in the input costs for Mey Eden Water products, including an increase in the raw materials and costs of local suppliers and suppliers from abroad. Because of this, Mey Eden decided to implement a price increase in its products from November 1, 2024."
Thus, personal water bottles 330 ml/500 ml/750 ml/1 liter will become more expensive by 4.5%, while the popular family water package of 1.5 liters will become more expensive by 6%. The personal and family soda packages, whose sales are not significant, will not become more expensive.
Just one year and three months ago, the company raised the prices of its products by 5.8% for the same reasons. The choice to do this again is puzzling, since the price of the plastic or the water that the company produces from the Golan springs, did not rise by such a rate if at all. Supplier costs did not jump by about 5% on average either.
Market sources explain the timing chosen to announce the increase in price, with the fact that MiMey Eden is in the very advanced stages of selling the company. "They have an interest in showing an increase in sales and income, in order to be more attractive and maximize the profit from the sale." The company claims, on the other hand, that there is no connection between the price increase and the fact that the company is on the shelf.
Two days ago it was announced that the stage of submitting the non-binding offers for the purchase of Mey Eden Water in the tender conducted by the owner, Primo Water, had come to an end, and commercial data was transferred to approximately 20-30 Israeli entities that submitted an initial, non-binding offer through the Rothschild Bank, which manages the sale. In the coming weeks, the entities that will move to the next stage of the tender will be chosen, among them the Apex Fund, the Fortissimo Fund through its subsidiary Sugat, Jafora Tabori, Tempo which markets it, and the Green Lateran company.
From the data provided to those interested, it appears that Mey Eden Water's revenues are approximately NIS 530 million per year, while the company's EBITDA amounts to approximately NIS 65 million, and it is expected that the figure will increase by approximately NIS 10 million due to the efficiency plan that the company conducts these days Also, it was claimed before the potential buyers that Mi Mey Eden is about to enter the soda field through a new brand - Mi Mey Eden Soda - which will be marketed mainly to restaurants.
Mey Eden Water dominates the water market with sales of approximately NIS 222 million in 2023 and a market share of approximately 38%. It is engaged in distributing water jugs directly to consumers and businesses, and marketing the Lavazza coffee brand. While the non-binding offers that have been submitted are about NIS 400 million , Primo Water, which is traded on the New York Stock Exchange at a value of 4.8 billion dollars, and purchased the company eight years ago, aims to sell it for NIS 550 million. The current increase in price will benefit her when she presents the latest data to potential buyers - less so to consumers.
Mey Eden Water responded: "The drastic price increases, especially during the war, do not spare Mey Eden Water either, and affect its production and supply chain in a variety of areas. Therefore, we are forced to update the price list of Mey Eden Water bottles, as little as possible, in order to partially minimize the The increase in suppliers' inputs and costs that we have been dealing with for a long time. We are announcing an update to our product price list at an average rate of 4.5 percent for the price of individual bottles, and 6 percent for a family bottle, which will come into effect starting in November 2024."