The Osem-Nestle company announced on Thursday evening that it will cancel the price increase of its products completely, after having previously announcing only that the increase will be postponed by three months.

The company noted that "this decision was made despite the fact that in the past year the company has experienced an unprecedented cumulative increase in production inputs and operating costs."

"As a company that has been at the forefront of the Israeli food industry for 80 years, and as a company that employs 4,000 people in Israel and operates 8 factories, most of which are in the periphery, and our products are a symbol of beautiful and good Israeliness, and out of a genuine desire to be attentive to the feelings of the public in Israel, the company today made the decision to absorb the full increase in these prices, in order to help deal with the cost of living in Israel," Osem said.

The company further said in a statement, "It is important to say that dealing with the cost of living in Israel does not solely rely on the shoulders of the food industry, and that the State of Israel needs a strong, innovative and leading Israeli food industry for the future of us all. At the same time, we understand that in order to deal with the cost of living, we need to band together to find a common path built on the mutual contribution of all the factors that can help in this and we are willing to be among those who will lead this process."

Dan Proper, Chairman of the Board of Directors of Osem-Nestle, stated that "Osem has been rooted in the heart of Israeli society for almost 80 years. Osem has always been attentive to its consumer public. Over the years we have built factories, strengthened the development towns and developed a glorious and competitive industry that employs thousands of people and looks after its consumers. It is only natural that our hearts are open to the feelings of consumers and that is why we have decided to change our decision and cancel the increase in prices. I hope that this step will serve as an opening for a new period of a slowdown in the rising prices in the economy."

Avi Ben Assayag, CEO of Osem-Nestle added, “Our decision to moderately raise the prices of some of the company's products was due to heavy increases in the prices of raw materials, packaging and transportation costs worldwide. However, the complex situation of many consumers in Israel and the public mood have led me to the conclusion that we must cancel the increase in prices and absorb the full increase in prices. I am convinced that this move will contribute to strengthening the long-standing alliance we have built and our millions of loyal consumers."

Earlier this week, tens of thousands of people shared a post from the Facebook page of the Channel 13 program “Hazinor”, which called for a boycott of pasta made by Osem due to the high price difference between their pastas and pastas made by competing brands.

A day later, Osem’s leadership met with Finance Minister Avigdor Liberman. During that meeting, it was agreed upon that, during the next three months, there will be an in-depth examination of various ways to reduce the price increases of the company's products.