DUN'S 100 - 2016

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Food Industry
561
2016 | DUN’S 100 DUN’S 100 | 2016
DUN’S 100 | 2016 2016 | DUN’S 100
Food Industry
Food Chains
The value of the food retail market in Israel in
2015 was about NIS 63-66 billion (an increase
of about 2% compared with 2014). During
2015, there were three large and well-known
players operating in Israel's food retail market
– Shufersal, Mega (until its collapse) and Rami
Levy as well as other marketing chains operat-
ing throughout the country, mainly in the dis-
count market, such as – Yeinot Bittan, Victory,
Johannenof, Machsanei Shuk, Hetzi Hinam,
Osher Ad and more. In July 2015, following
a deterioration in the business and financial
results of the Mega chain, a debt settlement
was approved for the chain with its creditors
(the banks and property landlords). As part of
the debt settlement, the Mega chain sold all its
discount format branches (and several Mega
in the City stores) to various marketing chains
in the discount market. In addition, it sold the
Eden Teva Market chain (through which Mega
operated in the health and organic field) after
it entered into a stay-of-proceedings. In Janu-
ary 2016 the Mega chain itself entered into a
stay-of-proceedings procedure and several
trustees were appointed in order to continue
routine operations of the chain and to find po-
tential buyers for Mega in the City branches.
The events that took place led to shortages of
available products in Mega branches, closure
of the chain's website, a one-time strike of the
chain's branches by its employees and conse-
quently loss of customers to other chains. In
May 2016, the sale of Mega to the Yeinot Bittan
chain (owned by NahumBittan) was approved.
Yeinot Bittan, which has 71 branches, merged
with Mega's 127 branches and after the sale of
10 branches, as required by the Antitrust Au-
thority in order to prevent over-concentration in
certain geographical areas, the chain will have
188 branches throughout the country.
Shufersal, the leading chain in the sector, end-
ed 2015 with total revenue of NIS 11.45 billion,
down 0.8% compared with 2014. This decline
stemmed mainly from a rise in the activities of
franchisees in the company's branches, from
which the chain only receives sales commis-
sion. In addition, in 2015, the chain swung to
a net profit of NIS 153 million compared with a
net loss of NIS 107 million in 2014. The move
to profit stemmed among other things from a
reduction in excessive store space, improving
in trading and supplier terms, increasing private
label operations, transferring activities involv-
ing a loss to franchisees, reducing expenses
and more.
The Rami Levy chain ended 2015 with total rev-
enue of NIS 3.98 billion, an increase of about
16.8% compared with 2014, which was mainly
the result of opening new stores. In addition,
the chain reported a net profit of NIS 74.8 mil-
lion, down about 20.9% compared with 2014,
mainly due to an increase in sales and market-
ing expenses.
Suppliers
In 2015, the trend in the growth of the range
of products in the food industry again contin-
ued, mainly due to the growth in the import
of products. In addition, the restrictions that
were imposed by the authority of the law's in-
structions regarding relations between chains
and suppliers influenced the manner of the
contracts between them. It was also apparent
that in 2015, the food chains continued to buy
from the four prominent suppliers in the sector
-Tnuva, Coca Cola, Strauss and Osem – in very
large amounts.
Food Retail – Key Players in 2015 *
Shufersal
Rami Levy Hashikma Marketing
Bitan Wines
Merav – Mazon Kol
Kol Bo Hazi Hinam ~
Tiv Taam Reshatot
Super Market Yochananof ~
Victory Supermarket Chain
Machsanei Ha Shuk ~
Co-Op Israel (Jerusalem)
Dor Alon Retail Sites Management ~
Super-Dosh Ltd. ~
Almashadawe King Store
Keshet Tastes Ltd.
Mania Group
~ Data of - Kol Bo Hazi Hinam, Machsanei Hashuk, Super Market Yochananof, Dor Alon Retail Sites Management and
Super-Dosh was evaluated by Dun & Bradstreet.
38%
10%
8%
6%
4%
3%
3%
3%
3%
2% 2%
2% 1%1%1%
13%
Key Suppliers in 2015
According to the revenue turnover, in NIS billions
6.9 7
6
5.2
5.6
5
4.2
4
2.9 3
2.1
2.5
2
1.1
1.5 1.6
1
0
Tempo Sano Hogla
Kimberly
Unilever
Israel ~
Neto Diplomat Osem Strauss
Group
Coco Cola
Israel ~
Tnuva
Group ~
~ Tnuva Group, Coca-Cola and Unilever Data have been evaluated by Dun & Bradstreet.