Osem, Nestle's subsidiary in Israel, has raised prices on essential goods including baby formula, coffee, and hot meals by up to 9%.
Osem announced a price increase on its goods at an average rate of 2.2% because of raised "production costs" in a Thursday statement.
However, N12 news site said that in effect, the increase would raise prices on various necessary goods up to 9%.
The company will be raising prices on snacks by 5%, soup powder and croutons by 5%, hot meals by 4 – 6%, baby formula by 7%, and coffee by 9%.
This is Osem's second price hike since the start of 2025, and its third within 12 months. The company raised prices at an average rate of 2.2% in January 2025. However, prices rose between 4% and 9% on items such as coffee, chocolate and pastries, ketchup and sauces, and Sabra products.
Osem's second price hike in 2025, third in a year
In May 2024, the Nestle subsidiary announced a price increase that effectively raised costs from 2% to 7% on products such as pastries, snacks, beverages, ready meals, and ptitim.
קחו נשימה עמוקה ותראו מופתעים! אסם נסטלה הודיעה ללקוחות החברה כי תייקר חלק ממוצריה בהם: קפה, חטיפים, מטרנה, מנה חמה, אבקות מרק, פירורי לחם וקרוטונים, בשיעור ממוצע של עד 9%. ההעלאה תכנס לתוקף ב-3.6. הסיבה לטענת אסם, התייקרויות משמעותיות במחירי חומרי הגלם והאריזה pic.twitter.com/RcGAh16NSl
— עינב קרנר (@einavkerner) May 15, 2025
“Due to continued significant increases in raw material and packaging prices, production costs, and logistics costs at the company’s factories in Israel, we are forced to update the price list for the company’s customers on a small portion of the company’s products,” Osem said in its Thursday statement.
In response, Opposition leader Yair Lapid slammed the Israeli government for its perceived failure to protect the middle class.
"Next month, prices will go up for: coffee, snacks, Materna, ready meals, soup powders, bread crumbs, and croutons. How many unnecessary government ministries will be canceled? Zero. How much coalition funding will be canceled? Zero. How much does the government care that the middle class is collapsing under these price hikes? Zero."