Price Increases Lead to Restrictions as Ferrero Israel Is Classified as a Large Supplier

Following a series of price hikes by Ferrero Israel, the Competition Authority has added the sweets importer to the list of large suppliers, which, under the Food Law, are subject to restrictions in their commercial relations with retailers. These are suppliers whose annual sales turnover is at least 344 million shekels. Ferrero Israel markets Ferrero products, including Nutella chocolate spread, Kinder bars, Ferrero chocolate, Tic Tac candies and other products. Over the past three years, the company has carried out a series of sharp price increases that pushed its sales above the threshold required for designation as a large supplier. In January 2025, Ferrero raised the prices of its products by up to 18%, with the sharpest increase recorded in Nutella spread. The price hike came just one year after the company raised its product prices by about 6%. Ferrero began this round of price increases in 2023, when it raised its product prices by 6.9%, citing higher raw material costs.

At the same time, the Competition Authority removed Strauss Ice Cream from the list of large suppliers. This followed Unilever's sale of the ice cream company to the Magnum corporation last September. Although the ice cream company's sales exceed 400 million shekels a year, the authority's determination is based only on sales to the retail market, while a significant share of the company's sales is carried out outside supermarket chains, including at entertainment venues, kiosks and convenience stores.

Large suppliers are subject to restrictions intended to limit their power over retailers. Among other things, they are prohibited from intervening in the price charged by the retailer for their products, arranging their products in the stores of large retailers, and making the sale of one product conditional on the purchase of another.