One week ago Tnuva Food Industries Ltd. made the dramatic announcement that it was lowering the price of cottage cheese to retail chains to NIS 4.55 including VAT, and that the recommended price to consumers should be NIS 5.90 per container. Yet it now seems that that announcement has been contradicted by Tnuva's instructions to the retail chains.
A document obtained by "Globes" shows that Tnuva has in fact told the retail chains that the price of cottage cheese should be NIS 4.55 before VAT, in other words NIS 5.30 after 16% VAT is added. This price to the retail chains is above the NIS 5 threshold that the leaders of the consumer boycott set.
Last week when Tnuva made their announcement about the lower price "Globes" explicitly asked the company if the new price included VAT and was clearly told by Tnuva's spokesman that the price included VAT.
The retail chains today accused Tnuva of "throwing sand in the public's eyes" and that a public relations exercise at the public's expense had taken place.
Published by Globes, Israel business news - www.globes-online.com - on July 6, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011