Anat Gavriel, the director-general of Unilever told Galei Tzahal (Army Radio) the reason many of their products will cost more for the yomim tovim is “kashrus”. She explained the corporate giant maintains five factories in Israel and they have costs that do not exist outside of Israel, citing 17% value added tax and kashrus.
The remarks left many angered, and social networks in Israel are hosting the comments of outraged consumers, many calling on her to step down from her position.
One such person is Itzik Alrov, who was involved in the so-called cottage cheese social justice protests. He is quoted by Kikar Shabbat as rejecting Unilever’s attempt to justify the unjustifiable price hikes ahead of the yomim tovim. “If one checks the kashrus claim, one may be surprised to learn prices in chareidi areas are lower, not higher” he explains, rejecting the legitimacy of trying to blame kashrus for the price hike.
“If kashrus has an impact on a product, it is a positive one, and one cannot deny the fact that Israeli produced items are sold abroad for half the price they are sold here. The statements made by the honorable lady are not based in fact.”
(YWN – Israel Desk, Jerusalem)
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3 Responses
Basic laws of economics apply even in Eretz Yisrael. If there is no change in demand nor supply, prices shouldn’t change. While perhaps more people keep kosher around the holidays, the increase in kosher due to higher demand will be offset by a fall in the price of treff. For most sorts of products (excluding such items as matza for Pesach), there is unlikely to be a major shift.
The person quoted is not only a bigot, but one who probably flunked Introduction to microeconomics.
I think she blamed the 1% increase in VAT (not that VAT is 17% here – as many European countries have higher VAt rates than Israel). YWN should report accurately.
I wish Ms Unilever would have had the guts to say exactly how kashrus is at fault. Perhaps for pesach where more t’midis is necessary but NOT for this time of year.
Perhaps she could have said it simple price gouging on their part???