Independent supermarket chain Kol Bo Hazi Hinam Ltd. has escalated its battle with food company Osem Investments Ltd. (TASE: OSEM). Sources inform ''Globes'' that Hazi Hinam has removed all Osem products from its shelves, including dry goods, pasta, and ketchup.
Two week ago, in the wake of a commercial dispute, Hazi Hinam removed Osem frozen and chilled products from its refrigerators. Hazi Hinam also did not put any Osem products on the shelves of its new supermarket that opened last week in Hod Hasharon. The supermarket chain has now expanded that move to all its stores.
The measure affects Osem's own brandings, including Sabra Salads, Tivall meat substitutes and vegetarian products, as well as brands that Osem distributes, such as Jafora Tabori Ltd.'s Tafugan juices, Mishey Emek Hayarden Cooperative Society Ltd's Off Tov poultry products, and Kibbutz Dorot's Dorot Garlic and Herbs.
Osem has counterattacked against Hazi Hinam and its owner Zaki Shalom, publishing ads in daily newspapers offering discounts of 15-20% on leading products at Hazi Hinam competitors.
The discounts will only apply at discount supermarket chains Shufersal Deal, owned by Shufersal Ltd. (TASE:SAE), and Mega Bool, owned by Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI), Hazi Hinam main competitors. Tivall schnitzel will cost NIS 24.90, Off Tov's thin large schnitzel will cost NIS 27.90, and 500-gram containers of Sabra Salads' hummus and other products will cost NIS 10.
The sales will be at specific stores proximate to Hazi Hinam supermarkets in Holon, Kfar Saba, Segula-Petah Tikva, Hod Hasharon, and west Rishon LeZion.
Osem and Hazi Hinam are battling over the commercial terms for Osem products that Hazi Hinam purchases, and over Osem's participation in the set-up costs of Hazi Hinam's new supermarket at Hod Hasharon.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2010
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