Unilever products returning to Shufersal shelves

Nearly three months after Unilever products were removed from the shelves of Shufersal supermarkets, the much publicized battle between Israel’s largest supermarket chain and the food and consumables giant has come to an end. Sources inform “Globes” that within the past twenty-four hours, the two sides have reached agreement, and it would appear that Unilever products will start to be supplied to the chain from tomorrow (Wednesday).

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Market sources say that in the past few months Shufersal CEO Ori Watermann has adamantly refused to agree to the double-digit price rises of up to 20% that Unilever was demanding. It is believed that the rise will be significantly less than that, and will amount to up to 10%.

The sources also said that Shufersal would absorb part of the price rise, such that consumers will still pay more, but not by as much as in Unilever’s original demand.

According to figures from StoreNext, in December 2022 Unilver’s sales in the Israeli market as a whole fell by 36.6%. This amounts to a loss of NIS 65 million in comparison with December 2021. In November 2022, at the beginning of which Unilever stopped supplying goods to the retail chains, its sales fell by 28%, leading to a loss of NIS 37 million.

In January 2023, Unilever has recommenced supply to most of the retail chains after reaching agreement with them, but Shufersal remained unmoved. The total damage to Unilever is estimated at about NIS 100 million in the past three months.

Shufersal stated in response to the report: “Shufersal has reached commercial understandings with Unilever, under which the most popular products will return to the chain’s shelves after almost three months during which Shufersal acted to delay and minimize as far as possible the rate of price increases that the various suppliers were demanding. Shufersal will continue to do all in its power to continuing fighting against the cost of living in Israel.”

Published by Globes, Israel business news – en.globes.co.il – on January 24, 2023.

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