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Strauss first entered the delicatessen in the marketing networks - Walla! Business and Consumerism

2019-12-03T14:53:19.046Z


The second largest dairy in Israel will start marketing cheese delicacies from the Danish Arla dairy. At the same time, Strauss is expected to stop her special series of cheeses called a grinding ensemble ...


Strauss first entered the delicatessen on the marketing networks

The second largest dairy in Israel will start marketing cheese delicacies from the Danish Arla dairy. At the same time, Strauss is expected to halt its special cheese series called Ensemble for the sake of profitability

Ofra Strauss (Photo: Eyal Yitzhar)

Ofra Strauss (Photo: Photo: Eyal Yitzhar, Globes)

Strauss first entered cheese sales at the delicatessen of the marketing chains, the Globes learned. The second largest dairy in Israel under the management of Raanan Kowalski will start marketing cheeses for delicacies in the marketing chains produced by the Danish dairy Arla. As part of the franchise agreement to distribute Arla's products in Israel, Strauss is required to market three types of products - blues blue cheese, patina cheese and butter spread, when it comes to products previously marketed by Willie Food.

It was also learned that as part of the activity at the delicatessen, Strauss dairies sought to study the market and even met with a consultant in the field, subject to the terms of its distribution agreement with the Danish dairy. So far, Strauss has not been present in this market, although it owns one of the three largest dairies in the market and also half of the Yotvata dairy shares.

At the same time, "Globes" has learned that Strauss is halting the activities of the recently launched specialty cheese series under the name Ensemble, so that when the current inventory is over it is unlikely to renew it. As far as is known, the reason for discontinuing operations is the erosion of profitability in the category due to the relatively high purchase price of specialty cheeses.

Since Strauss received the Arla Distribution franchise, it has enjoyed significant growth in its dairy sales, thanks in large part to the sales of Butterflies Lorpek, the company's flagship brand. Strauss received the franchise for the distribution of Arla's products after the Danish dairy decided to terminate the contract with Willie Food about two years ago.

Under the agreement between Arla and Strauss, it was stipulated that the latter would be Israel's sole distributor of dairy products in Arla's category in butter; Butter for spreading, cream cheese, salted cheese (feta), mozzarella and specialty cheeses, and that Strauss will be responsible for logistics management of the transport and all aspects of product marketing for customers. Also, as part of the agreement, Strauss is given the first refusal right as Arla seeks to distribute other products under the Arla, Castello or Lurpak brands. Subject to this limitation, Arla reserves the right to market in the country, itself or through other distributors, products not included in the agreement, including private brand products.

Cheese sales in the deli are about NIS 800 million a year. This is a category dominated today by the largest dairy in Israel, Tnuva, which holds about 50% of the category's sales. Gad Dairies holds an 11% market share, while Tara holds about 6%.

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Tnuva controls the deli

Tnuva controls deli (Photo: Globes, PR)

In the first ten months of 2019, cheese delicatessen sales were down 2.1%. Leading these declines is Tara, whose deli sales have dropped by about 29%. The decrease in sales of Terra means a loss of NIS 19 million. At the same time, Tara has managed to strengthen its sales of cheese in the shelves of the marketing chains, with sales of NIS 12 million.

Sturnext data shows that from the growth that Strauss dairy showed in the first ten months of 2019 totaling about NIS 99 million, Arla's butter sales contributed about NIS 40 million - 40% of the growth.

Recently, Globes revealed that Strauss dairy is on the verge of acquiring another international brand franchise - Alpero, a prominent dairy substitute brand bought three years ago by its partner (20%) in the dairy - Danone.

Source: walla

All business articles on 2019-12-03

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