Sources inform ''Globes'' that the Central Bottling Company Ltd. (Coca Cola Israel) is in talks with Kibbutz Givat Haim Meuhad and Kibbutz Givat Haim Ihud to increase of its holdings in citrus fruit juice producer Gat Foods.
Coca Cola, which currently holds 33.3% of Gat Foods through Israel Beer Breweries Ltd., wishes to reach a 51% controlling stake in the company. Kibbutz Givat Haim Meuhad and Givat Haim Ihud own the rest of Gat Foods in equal shares, with the company's chairman and CEO appointed by mutual consent.
Gat Foods, which now employs 450 people, was first established in 1942 with the founding of the Gat factory at Kibbutz Givat Haim Meuhad. The company's turnover grew 6% to NIS 310 million in 2006, from NIS 284.4 million in 2005. Gat Foods has set itself a similar sales target for 2007. More than half the company's sales are exported to markets in 35 countries worldwide.
According to figures from market research company Stornext Ltd. the estimated NIS 800 million fruit juice market in Israel, is divided among two companies, The Central Bottling Company, which controlled a 34.7% market share in 2006 (through Gat Foods), and Jafora Tabori, which markets the Spring, Tapuzina, and Crystal brands, with a 33.1% market share.
Kibbutz Givat Haim Ihud business sector chairman Yizhar Landau told "Globes", "There have been a number of rounds of negotiations since the first agreement. I am unaware of any new developments."
The Central Bottling Company declined to comment on the report. Kibbutz Givat Haim Ihud representatives were unavailable for comment.
Published by Globes [online], Israel business news - www.globes.co.il - on July 25, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007