Israeli Winter Treat's Price Soars Amidst Consumer Habits
Translated & summarized from Maariv by baba
The price of Israeli Krembos has risen by almost 50% in three years, with individual units costing up to 2.86 shekels. This surge is attributed to seasonal demand, lack of price competition, and consumer nostalgia, particularly for the dominant Strauss brand. Investigations show significant price differences between brands and retailers, with cheaper options often overlooked. Experts advise consumers to compare prices per unit and try less expensive alternatives to save money.
The story in 6 lines · by baba
- Krembo prices have jumped nearly 50% in three years, reaching up to 2.86 shekels per unit.
- Seasonal availability in Israel makes consumers less price-sensitive compared to Europe.
- Strauss Krembos are significantly more expensive, costing up to 93% more than competitors.
- Price disparities exist between brands and even within the same supermarket chain.
- Consumer expert advises checking price per unit and trying cheaper brands.
- Nostalgia is suggested as a key factor contributing to higher prices.
The price of the popular Israeli winter dessert, Krembo, has surged by nearly 50% over the past three years, with individual units now costing up to 2.86 shekels. This price increase comes despite the removal of individual foil wrappers, a move that was initially expected to lower costs. Experts suggest that the Krembo's seasonal availability in Israel, unlike its year-round presence in Europe, creates a sense of urgency among consumers, making them less sensitive to price hikes. For instance, a 12-pack of Krembos in a Dutch supermarket costs 2.49 euros, and a six-pack in the UK is 1.20 pounds, both indicating a lower per-unit cost than currently seen in Israel.
Investigations into pricing across four brands and 21 supermarket chains revealed significant disparities. Strauss's Krembos are the most expensive, averaging 2.55 shekels per unit, approximately 93% more than Colorado and 61% more than Rio. Even within the same supermarket chain, like Rami Levy, a pack of eight Strauss Krembos can cost 18.90 shekels, while a similar pack of Colorado or Rio costs only 9.90 shekels. Feldman's strawberry-banana Krembos, while appearing cheaper at 14.76 shekels for a six-pack, actually cost 2.46 shekels per unit, nearly as much as Strauss.
The article points to a lack of genuine price competition, suggesting that the dominant brand, Strauss, benefits from nostalgic consumer loyalty built over years. Seven supermarket chains sell the same pack for the identical price of 18.90 shekels, with minimal price differences between the cheapest and most expensive retailers for the same product. Rami Levy generally offers the lowest prices across multiple brands, while chains like 'Ha'Achshara' (Neto Saving) and Carrefour City show significant price variations for the same items.
Consumer expert Dr. Hazi Gur Mizrahi advises shoppers to check the price per unit, compare prices across different chains, and give cheaper brands a chance. He argues that while production and distribution costs are factors, there's no justification for a long-standing brand to cost nearly double its competitors without offering a clear added value. The article concludes that nostalgia, while not an ingredient, may be the most expensive component driving up the price of Krembos.
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