MK David Bitan (Likud) Chairman of the Economy Committee at the debate on the approval of the obligation of license plates for electric tools/Knesset spokespersons
The Knesset's Economic Committee, chaired by MK David Bitan (Likud), will convene tomorrow for another discussion on the issue of restrictions on the pharma chains, led by SuperPharm, and on their geographic expansion and the opening of new branches. The main limitation in MK Yanon Azoulai's bill S) Prevents SuperPharm from opening new branches in shopping malls for five years. Migdal publishes reports with an ambitious profit target of one billion shekels by 2027.
In doing so, the committee tries to adopt restrictions that were previously imposed under the Food Law. In 2016, the Pharm chains adopted parts of the Food Law, including the need for price transparency The SuperPharm chain, managed by Nitzan Lavi, is also ready to accept the limitations in the relationship between suppliers and retailers.
However, the relationship with the suppliers is not relevant to 45% of SuperPharm's turnover (pharmacies) and another 20% (cosmetics). The competition in chains such as Mashbir, April and Duty Free is stronger than ever. The geographical limitation remains, which failed anyway in the food law.
The pretense at the introduction of the food law, which was promoted following the social protest, was to reduce food prices by 15% and reduce the price level in terms of purchasing power to the average of the countries of the OECD.
Ten years have passed since then and it became clear that the achievement of the goals failed: the market shares of the major suppliers remained high, and the food price index not only did not decrease, but increased.
While the price index rose in the last decade by 19.8%, the food index soared by 23.8%.
On the other hand, the pharmaceutical products index decreased by 7.3%, and the clothing and footwear index decreased by 31.6%.
Bitten
Superpharm does not need to apologize for being successful/Knesset Speakers, Noam Moshkowitz Knesset Speakers
So how did this "miracle" happen?
very simple.
While the regulation and customs restrictions continued in full force in the food market, and the steps taken were cosmetic, the competition in the pharma market proved itself (through the entry of chains such as B or Good Pharm).
In the clothing and footwear market, prices fell thanks to a massive lowering of tariffs and opening to competition.
Those who want price reductions, are welcome to cancel the various price committees or production quotas in the agricultural sector.
In order to achieve such achievements in the food market as well, there is an obligation to eliminate unnecessary regulation, a massive change of standards in the Standards Institute and import relief in the field of food products and cosmetics.
Adam Friedler, CEO of the Good Pharm chain, which is owned by Rami Levy, also holds this opinion. In an interview last week with the Marciano Foundation from News 12, he claimed that the solution to the pharma market does not lie in geographical limitations, and he is right. If Super-Pharm is the only one operating in the horizons, please respect the chains The others are to also purchase land at the cheapest price and open a farm.
This is the situation in Ramat Gan, where I live. Superpharm was an exclusive supplier until it arrived in the Good Farm neighborhood and opened two branches on Bialik Street (full disclosure: one of them is under my house). The branches could have been opened to the same extent by the B chain of Shufercell, which holds real estate inventory, or any other pharm chain.
Superpharm, which itself developed the successful pharma brand in Israel, should not be penalized for being the first to locate the next thing in the world of consumption in Israel, which replaced the outdated pharmacies.
She also has no reason to apologize for being successful.
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David Bitan
Economic Committee
competition
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