Israel's Winter Treat: How Nostalgia Drives Up Krembo Prices
A comprehensive market survey reveals that Strauss Krembo prices in Israel have surged by up to 46.5 percent over three years, driven by emotional nostalgia and high market concentration. While alternative brands cost nearly half as much, dominant distribution limits consumer choices.
When the winter chill arrives in Israel, it brings back a beloved seasonal tradition: the Krembo. Composed of a simple base of a biscuit, whipped egg-white foam, and a chocolate coating, this modest sweet carries zero advanced technology. Yet, while supermarket chains battle fiercely over the prices of basic dairy and cottage cheese, leading Krembo packs sell for nearly three shekels per unit, while alternatives on the same shelf cost less than half. A recent market survey examining 21 retail chains reveals how nostalgia, market concentration, and consumer habits sustain high prices for a simple winter treat.
Seasonal Appeal and European Comparisons
Unlike in Israel, where high summer temperatures force ice cream factories to shut down production lines and turn the Krembo into a limited seasonal event, European counterparts enjoy year-round availability at lower costs. In Germany, it is known as Schokokuss, in the Netherlands as Zoenen, and in Britain as Chocolate Teacakes. Dutch retailer Albert Heijn sells a 12-pack of Buys for 2.49 euros, while British chain Tesco offers a six-pack of Tunnock's for 1.20 pounds. Both prices equal less than a single shekel per unit. In Israel, however, seasonal scarcity creates a powerful psychological mechanism: limited availability amplifies consumer demand and reduces price sensitivity.
Price Surges and the Illusion of Savings
Over the past three years, Strauss Group's eight-pack Krembo has seen steep price hikes. At Yochananof, Rami Levy, and Osher Ad, the price jumped from 12.90 shekels in 2023 to 18.90 shekels today, while at Shufersal Deal it climbed from 15.90 to 20.90 shekels—representing increases of up to 46.5 percent. This inflation rate vastly outpaces the general economy. Meanwhile, alternative brands offer stark contrasts. While Strauss packs cost between 18.90 and 22.90 shekels (averaging 2.55 shekels per unit), Colorado packs sell for an average of 1.32 shekels per unit, making Strauss roughly 93 percent more expensive.
Market concentration further exacerbates the trend. Strauss products appear in all 21 surveyed chains, whereas Colorado is found in only five and Rio in four. In five specific chains, including AM:PM and Keshet Teamim, Strauss stands as the sole Krembo option on the shelf. Retailers capitalize on emotional brand loyalty built since childhood, leaving consumers with little competitive pressure to drive prices down. As winter returns, shoppers face a choice: pay the premium for nostalgia or give the cheaper alternatives a fair chance.
