Lesser to Cease Egg Supplies to Rami Levy Chain Starting Late August
One of Israel's largest egg marketing firms has notified the Rami Levy Shivuk Hashikma chain that it will halt supplies at the end of August due to a commercial dispute. The chain currently sells eggs below the government-regulated price.
The company M. Lesser is set to stop marketing eggs to the Rami Levy retail chain. One of Israel's largest egg suppliers has notified the Rami Levy Shivuk Hashikma chain that it will cease all deliveries to its branches starting at the end of August, following a commercial dispute between the parties.
Lesser has long been considered a primary supplier for the Rami Levy chain. The retailer claims the decision was reached by mutual understanding and that it will continue to work with its existing supplier, H.H. Matilot, based in the north of the country.
Egg prices in Israel rose by 1% last November following two years of fixed pricing, resulting in a minor increase of 13-16 agorot per dozen. As eggs are a price-controlled product, retailers are prohibited from raising prices above the set limit, but they are permitted to sell below the regulated price—a strategy actively employed by Rami Levy:
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A 12-pack of size L eggs is sold for 14.20 NIS (regulated price: 14.24 NIS).
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A 12-pack of size M eggs is sold for 13.10 NIS (regulated price: 13.13 NIS).
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An 18-pack of size L eggs is sold for 21.20 NIS (instead of 21.36 NIS).
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A 30-pack of size M eggs is sold for 32.70 NIS (instead of 32.82 NIS).
While the savings for the consumer are less than one percent, these discounts are apparently financed by the chain or through a joint arrangement with the supplier. Lesser is a major marketer operating alongside other industry players such as Glicksman, Ramot Hashavim, Beitzey Aviv, and Man Hateva Beerotayim. No official comments were provided by the companies regarding this report.
