Nestle-Owned Israeli Food Producer Faces Boycott Over Price Hikes

Osem, which produces the popular snack Bamba and other staples, is set to boost prices, encouraging other companies to do the same. The chairman of the Knesset Economy Committee called for a boycott of the company, the Israeli newspaper Haaretz reported.

Photo Insert: Bamba is a popular snack in Israel

The third-largest food producer in Israel, Osem has sent retailers a new price list indicating that it will be raising the prices of hundreds of items, including such staples as ketchup, instant coffee, breakfast cereal, pasta, flour, and the popular peanut-based Bamba snack.

The increases, which will be between 3-7 percent depending on the item, had been temporarily suspended as consumers condemned the move and many called for a boycott of Osem products.

But it appears that the firm, which is wholly owned by international food conglomerate Nestle, could usher in a wider rise in food costs across the board – although it has promised that the price of Materna baby formula will remain at its current level.

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