strauss - Haaretz - June 21 2011
Strauss cotatge cheese Photo by Haaretz
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Following the lead of Tnuva and Tara, Strauss is trying to improve sales of its dairy products. Strauss is launching a "Sale 10" of its leading products with a large discount. For example, two 250 gram containers of its Ski soft white cheese or two containers of cottage cheese will be sold for NIS 10. Four Danone white yogurts will also go for NIS 10.

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Strauss said the sale will start next week and last through the High Holidays.

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Executives at supermarket chains called the sale a response to the steps by rivals Tara and Tnuva. Tara has increased the package size of its basic dairy products by 20% without increasing prices. The Tara sale will run for a few months. Products on sale include milk in cartons, cottage cheese, soft white spreadable cheese and hard yellow cheese. Tara also cut the price of its Moo pudding by 25%.

Tnuva also increased the size of its milk cartons, as well as of cottage cheese, white cheese and a number of products for children - at least for a few months. Tnuva also attributed the sale to the coming holidays, but it took no such action last year before Rosh Hashanah, or even before Shavuot, known for the custom of eating dairy foods.

"Strauss understood that it also must take action in light of the steps by Tnuva and Tara," said a top supermarket executive. "It's not at all trivial to see such sales before Rosh Hashanah, and certainly not for such products as Strauss' Milky [pudding]. It's all a result of the social protest."

Dairy companies are fighting to recover from the big drop in sales after the protests against high prices, particularly the cottage cheese boycott. Sales of dairy products totaled NIS 641 million in July, up less than 1% from July 2010. But after adjusting for price increases and inflation, sales of dairy products actually dropped 3%.