Cereal Prices Vary Wildly Between Supermarkets, Study Finds
Translated & summarized from Maariv by baba
A survey by the Retail Research Institute found that identical boxes of breakfast cereal can vary in price by up to 132% between Israeli supermarket chains. The study examined 15 products across eight chains, revealing significant price differences, such as Nestlé's Choco Krispies costing more than double at one store compared to another. While major brands like Telma showed consistent pricing, Nestlé products exhibited wider variations due to retailer competition. The findings highlight the importance of supermarket choice and brand loyalty in cereal purchasing decisions.
The story in 6 lines · by baba
- Cereal prices for identical products vary by up to 132% between Israeli supermarkets.
- A survey by the Retail Research Institute revealed significant price gaps for breakfast cereals.
- Nestlé products showed the widest price variations due to aggressive retailer competition.
- Telma's flagship cereals maintained similar prices across most surveyed supermarket chains.
- Private store brands are not always cheaper than established brands, sometimes costing more.
- The choice of supermarket significantly impacts the final price paid for cereal.
A price survey of breakfast cereals in Israel has revealed dramatic price discrepancies for identical products across different supermarket chains, with some boxes costing more than double. The study, conducted by the Retail Research Institute using the Prices website, found price gaps of up to 132% for the same cereal box.
While private store brands aim to be attractive, they are sometimes more expensive than well-known brands. The Israeli cereal market is largely dominated by two major players: Unilever, through its Telma brand, and Nestlé, which markets Nestlé cereals in Israel. Together, these two companies account for a significant portion of the branded cereal variety available.
The survey examined 15 identical cereal products across eight supermarket chains. For example, Nestlé's Choco Krispies (330g) were found to cost 12.45 shekels at Victory but 28.90 shekels at Tiv Ta'am, a difference of 132%. The price gap between Rami Levy and Tiv Ta'am for a basket of 15 products reached 133.90 shekels, illustrating that the choice of supermarket is as crucial as the brand choice.
Interestingly, Telma's flagship products, like its cornflakes and pillows, were priced similarly across most stores. In contrast, Nestlé products showed aggressive competition among retailers, leading to the widest price variations. In some instances, like at Shufersal, a private brand fruit cereal was even more expensive than a comparable Nestlé product, indicating that private brands are priced based on business considerations rather than always being cheaper.
Beyond price, the article touches on consumer habits, noting that familiarity with a brand, including its taste, texture, and packaging, creates a strong commercial asset. This familiarity reduces uncertainty, and consumers may perceive the higher price as payment for this assurance. The article also briefly mentions health concerns, referencing a US study that found an increase in sugar, sodium, and fat in children's cereals, urging consumers to check nutritional labels.
Mentioned
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.