800,000 Israelis Have Used the “Cheapest Basket,” Forcing Price Cuts Across the Market

About two months after Israel’s Economy and Industry Ministry launched the “Cheapest Basket of Israel” program with Carrefour, the ministry says the initiative has sharply changed shopping habits and increased competition in the food market. Economy and Industry Minister Nir Barkat said, “The data prove that the public votes with its cart,” adding that Israelis showed they are “not suckers” and that rivals were “panicking” and lowering prices.

According to the ministry, about 800,000 Israelis have already bought products through the program and saved hundreds of shekels per household. More than 100,000 new customers joined Carrefour, and the chain’s share in the basket’s products rose from 2.2% to 7.2%. Barkat urged the public to keep buying online or in the program’s 54 physical branches, saying, “Together we will continue the revolution.”

The ministry says the average basket price across the market fell from 1,707 shekels to 1,623 shekels, a drop of 4.75%, with competing chains responding through promotions and price cuts. Carrefour’s online sales rose 50%, and sales of basket products surged, including whole-wheat spaghetti up 1,552%, green pitted olives up 1,514%, 500-gram hummus up 1,487%, Tafogen chips up 1,279%, basmati rice up 1,159%, Ma’ma Oof products up 1,147%, and sugar-free corn from the field up 906%.

The broader market also saw notable reductions in popular items, including Crunchy Tapuchips down 14.9%, Gad’s Tzfatit cheese down 13.8%, Pinuk shampoo down 9.4%, and Gad baby mozzarella down 8.1%. The ministry estimates that a family buying the basket regularly could save more than 2,000 shekels a year.

During the press conference, Barkat also said he intends to advance legislation banning cross-ownership, which would prevent major real-sector or financial players from simultaneously owning major news media outlets, and vice versa, in order to reduce conflicts of interest and increase public trust.