A month ago, I was at the supermarket and chatting with the checkout clerk, who commented that all the customers have been talking about how the prices have been going up.
When I returned ten days ago to the same large (chain) supermarket, I saw the following sign.
Translation: As the leading supermarket for the charedi population, we are doing all we can to bring our customers products at fair prices.
The change in prices by the Osem supplier has translated to a sharp increase in pricing that harms our clientele. As a result, it is expected that there will be a shortage of products by Osem, Materna, Nestle, Tzabar, Tivol and others.
As I continued through the store, I saw more and more signs like these, all in front of mostly empty shelves. Interesting, I mused – and somewhat concerning.
A few days later I was back at the same supermarket, and couldn’t help but overhear a very agitated customer complaining to a staff member about the foods that are in short supply. She said that it’s been six months with the prices rising and more and more products missing, and that if the management is going to stop selling items by these suppliers, they’re obligated to find other products to replace them. They can’t leave the customers without anything in that category.
It was an interesting conversation, and when they finished, I went over to the same staff member. I heard her say she’s been working there for 14 years and had some questions about what I heard and what I was seeing in the store.
She explained that prices have gone up so much by these suppliers that the management has made the decision not to carry them because their customers can’t afford it. Where they can, they replace the product with something similar made by a generic company, and are able to sell it at a price similar to what the product was previously sold for. However, since they only offer products that have a particular kosher certification, they are limited in what substitute products they can offer. This is a challenge unique to them, as the other supermarket chains can use off brands with any minimal kosher certification (or none) to replace the more expensive products.
What’s going to happen to the availability of these foods that they haven’t found a substitute for? There seem to be only three choices: the suppliers will drop their prices and the store will begin to sell them again; the suppliers will not drop their prices and the store will decide to sell them since they can’t get anything else; or the store will not carry these products and they will not be replaced by anything – in which case they will stay missing until the bigger economic picture sees an upturn.
The option of prices going down would be welcome, but unlikely. Are the products made by these brand name companies rising due to sudden price gouging? I doubt it. They need to stay in business and make their profit; they are selling it at the price they need to get to cover all their supply/production/storage/packaging/delivery expenses, all of which have gone up.
Neither of the other two options are encouraging – one means much higher prices and the other an absence of a number of products.
I don’t know which way things will go, but as I’ve been noticing these trends in rising food prices, over recent months I’ve been gradually recalibrating my shopping and cooking habits to continue to stay within my budget and make meals that everyone enjoys!
Avivah
I haven’t bought from Osem et al for over twenty years because of the parent company (Nestle’s) utter disregard for the WHO code regarding the sale and advertising of breastmilk substitutes.
I know my personal boycott won’t make any difference to them, but I can’t and won’t in good conscience give them my money. There are plenty of other manufacturers plus, since we make most of our food from scratch at home, it’s l easy to avoid products from those companies (as well as cheaper and tastier).
Good for you for shopping your values, Louise! Maybe one person doesn’t make a difference (though if lots of people did the same it would make a huge impact), but it does make a difference to you, doesn’t it? At least that’s how I felt when I left Facebook. They don’t care that I left but I honored my conscience by refusing to participate in a platform that violated core values of mine.
We also make just about everything from scratch so this particular situation at the store doesn’t directly affect us. But the factors causing Osem to raise prices so much will affect us all eventually.