Israeli Dairy Giant Tnuva Lowers Prices After Chairwoman Resigns

Tnuva, which suffered prolonged boycotts leading to Israel's massive social protests, calls on marketing chains to do their part to lower prices.

Zehavit Cohen, head of the Israeli dairy giant Tnuva, resigned on Sunday morning after months of protests over soaring dairy prices. Shortly after her resignation, Tnuva announced that the company would be lowering the prices of its products by 15%, a move that would take hold on Tuesday.

According to Tnuva, the cumulative worth of the price reductions will be 125 million shekels, 62% of which will be paid for by the company.

The products that will be affected by the price-cut include white cheeses, hard yellow cheeses and Tnuva pudding. The newly decreased price of white cheese, for example, will now be 6.33 NIS instead of the previous price of 7.45 NIS, and the cost of 200 grams of sliced hard yellow cheese will now be 14.58 NIS instead of 17.15 NIS.

The CEO of Tnuva, Arik Shor, said on Sunday that “Tnuva listens to the voice of the consumer. We call on marketing chains to adopt our recommendations and do their part to lower prices.”

Tnuva has been the target of several boycott campaigns, starting with the cottage cheese boycott earlier this summer that led to the lowering of cottage cheese prices throughout Israel.

Late last month, students called for an overall boycott of Tnuva products, leading to a heightened demand for products made by competing companies Strauss and Tara despite aggressive discounts.

Tnuva attempted to combat the boycott with reduced prices on several of its dairy products, including an offer of two tubs of cottage cheese or soft white cheese for NIS 10, in containers that hold a free extra 10% or 20% of the cheese. Tnuva has also offered 50% off the second product for a wide range of products.

Tara jumped on the discount bandwagon as well, offering bigger containers of some products for no extra money.

cohen - Ofer Vaknin - June 17 2011
Ofer Vaknin