The global supply chain crisis coupled with massive inflation that is gripping America and part of Europe has now made its way to Israel. In recent days, some of the large supermarket chains in Israel have hung signs warning of a shortage of products from the international company "Unilever". These signs come amid a demand by Unilever to increase the price of a variety of products, something the Israeli supermarkets are fiercely against.
In response, Unilever has decided to stop supplying goods to many Israeli major chains. The heads of Unilever believe that consumers will begin to feel the shortages on the shelf within a week tops, especially with the various popular brands that they carry. The โShufersalโ supermarket chain was the first to hang the signs in protest of the price increase on Unilever products, and even removed the company's products from its online shopping site.
"Due to non-agreement to a price increase, there may be a shortage of Unilever products," Shufersal wrote in a statement. Shufersal added a recommendation to purchase similar products from other brands. Due to the expected shortage of Unilever products, there was an increase in the purchase of products from smaller private brands.
Shufersal, Yonan Beitan, Victory et Osher Ad boycottent Unilever et nโachetent plus leur produits https://t.co/ZrEdivxZJa
โ Infos-Israel.News (@InfosIsraelNews) November 7, 2022
Another supermarket chain and competitor to Shufersal, โVictoryโ, also refused Unilever's demand to add various products and joined the protest against the import giant. The CEO of Victory, Eyal Ravid, said in an interview for an Israeli television program: "A 15% price increase is too much for the Israeli consumer - this is a gross increase without negotiation."
The โRami Levyโ retail chain published a statement on social media about Unileverโs price hike, but so far no signs have been hung in the branches because according to the franchise, at the moment, there are no shortages. Rami Levy is considered a discount supermarket chain and one of the most popular ones in the country. They are able to keep prices on imported items lower than most chains because they buy in bulk so it is speculated that Rami Levy has a significant stock of Unilever products purchased before the recent hikes went into effect.
ืืกืชืืจืืช ืืืขืืฃ ืืืจืืช ืืช ืฉืืคืจืกื ืขื ืืฆืขื ืืืืืฅ ืืืืืืื ืืืืืื ืืืืงืจ ืืืืื. ืชืืื ืืืฆืืื. ืจืง ืขืืืื ื ืืืฉื ืชืขืฆืืจ ืืช ืืืงืจ ืืืืืื.#ืืืงืจืืืืืื pic.twitter.com/zwOdW6wng4
โ Histadrut Hamaof (@UCAPSE_) November 6, 2022
This is an unprecedented struggle in the field of retailing in Israel and at this stage, it is not clear what the results will be. In the meantime, consumers are asked to be patient and believe that it will be possible to significantly reduce the price increase, in the battle that started about a week ago. According to some experts, suppliers who do not sell their goods within about two weeks to three weeks will start to feel the fiscal damage caused.
ืฉืืคืจืกื, ืืื ืืช ืืืชื, ืืืงืืืจื ืืืืฉืจ ืขื ืขืืืืืช ืืืืืืชื ืืืืจืืืืช ืืช ืืื ืืืืืืจ! pic.twitter.com/38IDdJRXNO
โ ืืชื ืืขื ืืืืืืช ืืฉืืืื (@MovGov) November 8, 2022
In the meantime, the supermarkets continue to refuse to raise prices and are doing their best to gain support from consumers. This approach is also different in its unity between consumers and retailers, from standard western approaches to inflation that has swept the entire globe.
