Numerous food products manufactured in Israel by Israeli companies cost considerably less outside of Israel, a study found.
Financial magazine The Marker revealed some of the staggering disparities between what Israeli and foreign shoppers pay for basic goods. for example, candy bar Pesek Zman made by Osem/Elite costs 74% more in Israel's Yeynot Bitan discount chain than at Britain's Tesc; Osem onion soup costs 82% in the local Supersol than in Britain; and Wissotsky mint tea costs a whopping 102% more in the Holy Land than it does at Walmart in the US.
The Marker compared prices for 25 Israeli food products in Israel, the US and Britain.
The survey supports a report presented to the Knesset last week, which found that food prices in Israel are 19% higher than in the OECD, on average,and 25% higher than in the US.
A senior source in the food market said that Israel's VAT is a large part of the reason for the price gaps. Another blamed Israeli retailers for overcharging. He further claimed that the sample of products is not a representative one and that most Israeli products are considerably less expensive in Israel.
One wholesaler said that Israeli products are sold for low prices abroad because the manufacturers want to create a market for their products, which are relatively unfamiliar, whereas the products enjoy high brand recognition on the Israeli market.
Osem called the report “biased,” and said that according to a Nielsen survey, prices abroad are higher than in Israel, even though most Osem products are sold in Britain without the 18% VAT charged in Israel.