Israeli watchdog raids supermarket chain Shufersal and food group Strauss

Officials reportedly search offices, seize computers and documents and question top executives; Knesset source says crackdown came following suspicions of price fixing
Reuters, Merav Crystal|
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The offices of Israeli supermarket chain Shufersal and food producer Strauss Group have been raided by the country's competition watchdog, the companies said on Tuesday.
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    • In a regulatory filing in Tel Aviv, Shufersal said its corporate offices were searched, computers and documents were taken and the company's chief executive was questioned.
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    שופרסל שטראוס    שופרסל שטראוס
    The corporate offices of both Strauss and Shufersal were raided
    Strauss, a maker of snacks, fresh food and coffee, also said materials were taken and senior and other company officials were questioned.
    The competition authority separately said it had opened an investigation and is looking at a number of suppliers and chain stores on suspicion of breaches of competition law. It did not provide further details.
    A source on the Knesset's Finance Committee said that the raids came after suspicions of price fixing rose following senior officials from both companies warning of rising prices in interviews they gave to the media.
    In a statement, Shufersal said: "The company acts in accordance with the law and will cooperate fully with law enforcement authorities."
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    תחליפי חלב    תחליפי חלב
    Strauss products in the supermarket
    (Photo: Osnat Peretz)
    A Strauss representative was not immediately available for further comment.
    Israeli media has reported that Shufersal, the country's biggest supermarket chain, was offering a website with discount prices for the ultra-Orthodox sector, prompting protests from the larger secular population. The website has since been shut down, Shufersal said.
    The Tel Aviv Stock Exchange briefly halted trade in both companies. After trade resumed, shares of Strauss and Shufersal were down 2.8% and 1.9% respectively.
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    2.
    Service to the PUblic
    As a senoir citizen without family Yashir L Mehadrin made it possible to go grocery shopping without having to leave my apartment. I can't lift the groceries and am now back to asking favors of people to get basic groceries.
    Alizah Zlotshewer| 11.10.21
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    1.
    Of course it's price-fixing
    In the USA, did you notice how the carton of orange juice shrank from 64oz to 59oz to 52oz? And that every oj manufacturer downsized within weeks of each other? And that their pricing was within pennies of each other? And what did the government watchdogs do who are supposed to watch for price fixing? Nothing. Looks like everyone does it- because they can get away with it. Maybe Israel will be different and will actually watch out for the consumer.
    David | 11.09.21
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    It's more than price-fixing
    It suits governments who can claim lower COL rise stats, so don't count on any action by the Israeli government. It's stealth price rises. You think the prices are miraculously staying stable, but psychologically (corporations hire psychologists for market strategizing few people notice these gradual reductions in quantities for some time. What starts in the USA soon starts to spread everywhere and in a country where cheating and chicanery is a way of life, it's happening big time. The Osem-Nestle group are masters of "shrinkflation" , so one has to ask why governments haven't cottoned on. Why should they, when they can claim to the mugs that under their brilliant regime the COL hasn't gone up. But in reality - and Osem, Strauss, etc - are in effect stealthily raising the price by as much as 60% (it happens gradually, a little less product every 2-3 months) in a year. A similar scam happens with "low-fat, low-calorie products." You buy your candy bar that states "only 80 calories" (e.g. a chocolate or cereal bar is usually at least double that). But what you're getting is the same fat and sugar, just a much smaller quantity. Why would governments intervene if their "fight against obesity" works so well?
    pgr| 11.10.21
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