Sources inform ''Globes'' that in the past two years, Johnson & Johnson (NYSE:JNJ) has doubled its toiletries and hygienic products in Israel from NIS 75 million to NIS 150 million, and that Johnson & Johnson Consumer Israel has become profitable. Johnson & Johnson has been selling its products in Israel since the 1960s.
Following a decline in business in Israel since 1995, in 2002, Johnson & Johnson established a direct office in Israel, managed by Jon Sumroy, a British Jew. In 2002, Johnson and Johnson cancelled a distributing agreement with Randi Co. and signed a new one with S. Schestowitz Ltd., which greatly increased marketing channels.
Johnson and Johnson’s contract with Schestowitz is not based on distribution fees, but on a partnership, under which Schesterowitz buys Johnson and Johnson products and sells them at sales points. Randi later sued Johnson and Johnson for unfairly cancelling its contract.
At the same time, Johnson and Johnson Consumer Israel worked hard to reestablish its presence in the Israeli market. Based in Shefayim, the branch has 13 employees, and shares administrative functions with Johnson and Johnson’s Israeli medical division.
Johnson and Johnson Consumer Israel holds nine brands, but focuses on four: Johnson and Johnson baby products, Neutrogena, Clean ’n’ Clear, and ROC. After investing in the launch of new products in 2005, the company intends to focus channel its efforts in supporting these four brands, and will invest more heavily in marketing. During 2006, the company will invest $10 million in advertising, on the basis of reporting by Ifat Advertising Monitoring, which means $5 million in practice.
Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2006
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