The entry of an international food chain like Carrefour will allow Yenot Bitan to skip brokers as Osem and Schestowitz, but not only. Carrefour has a private brand that operates in all categories of consumer products, which the chain in Israel will receive ready-made.
Less than a year after penetrating the food retail market through the acquisition of Yenot Bitan and Mega Bair that were on the verge of collapse, this morning Electra Consumer, controlled by the brothers Danny and Mikey Zalkind, rocked the industry with the news of receiving the franchise for the international food chain Carrefour.
this is the first time that an international food chain will be opened in Israel, bringing with it far beyond a desirable brand. The most powerful tool Yenot Bitan Group will receive, whose veteran brands will be wiped out in favour of Carrefour’s brands, will be the immense purchasing power at its disposal. This purchasing power will be reflected in direct purchases from international suppliers, which will allow the chain in Israel to skip brokers such as Osem in the areas of instant coffee (Tester’s Choice) or Schestowitz in Colgate’s toothpastes. But this will not stop at the direct purchase, which is a kind of parallel import at low prices. Carrefour has a private brand that operates in all categories of consumer products, which the chain in Israel will receive ready-made.
The company is not only a retail giant in international terms but one of the world’s largest food and consumer manufacturers in the world. The company manufactures in hundreds of plants around the world, 14 thousand food and non-food products, under 20 brands it owns. When it comes to a private brand produced for a chain of about 13 thousand branches, the price of the products is immeasurably lower compared to that of the largest private brand produced for the largest chain is Israel (Shufersal), which has about 300 branches.
The timing of the transaction has significance in Electra’s ability to realize the full potential of Carrefour’s contribution to its activities in the food and toiletry market.
The import reform and the Kashrut reform that make it easier to import products to Israel, open the gates in Israel to a variety of products, which until now were in the hands of the registered importers of leading brands, who have exercised their power to price them tens of percent more than their prices around the word.