Matzo wars!

U.S. producers like Manischewitz and Streit's are having a tough time competing with the Israeli-made product around Passover time, especially since supermarkets sell matzo at a deep discount. It's known as a loss leader, a product that's supposed to lure shoppers to the high-margin gefilte fish and kosher-for-Passover cake mix. (They do the same thing around Thanksgiving with turkeys.) From the Jewish Daily Forward:

Menachem Lubinsky, who runs a kosher consulting firm, said Israeli matzo sales have increased steadily in recent years. Last year, matzo sales totaled $86 million, Lubinsky said, 80% of which was machine-made matzo. In 2009, Israeli matzo captured 28% of the American machine-made matzo market, Lubinsky said. Last year, he said, sales from Israel had increased to 40% of the market. Lubinsky said demand was being driven by a rise in the quality of Israeli matzo and an improvement in packaging. But he said price was also a major factor. American manufacturers are selling 5-pound bundles of matzo wholesale this year for between $10 and $12, Lubinsky said. The same Israeli matzo bundles are selling at between $6 and $7. Industry officials say matzo is being produced more cheaply in Israel because of lower labor costs.