Tnuva, Coca-Cola Israel lose market share

Strauss and Neto Group gained in the first quarter.

Tnuva Food Industries Ltd., Israel's largest food company, lost market share in the first quarter of 2012, as did Central Bottling Company Ltd. (Coca-Cola Israel). In contrast, Strauss Group Ltd. (TASE:STRS), Israel's second largest food company and Neto Group, Israel's fifth largest food and beverages company, increased their market share, while Osem Investments Ltd. (TASE: OSEM), Israel's third largest food company, kept its share, according to Storenext data.

Among Israel's top ten food and beverages companies, Unilever Israel Ltd. and Soglowek Ltd., weakened, while Diplomat Distributors (1968) Ltd. and Leiman Schlussel Ltd. strenghtened, and juice maker Jafora-Tabori Ltd. held its ground, just ahead of Tempo Beer Industries (TASE: TMPO) and Angel Bakeries Ltd.

In the home and personal care market, market leader Sano-Bruno Enterprises Ltd. (TASE: SANO1) strengthened, while second placed Hogla Kimberly Ltd. weakened slightly. Among the top ten companies in this sector, Diplomat Distributors, Univlever Israel, Danshar Ltd. and Hanamal Packaging & Marketing (1984) Ltd. weakened, while Shaniv Paper Industry Ltd. (TASE: SHAN), Schestowitz Ltd., Henkel Ltd., and Reckitt Benckiser Israel Ltd. strengthened.

The fast-moving consumer goods (FMCG) market grew by 4%, compared with the corresponding quarter of 2011, to NIS 9.2 billion in the first quarter of 2012. Growth in terms of consumer prices was NIS 350 million. The food and beverages market grew by 4%, compared with the corresponding quarter, to NIS 7.89 billion in the first quarter. Growth in the beverages market was slower, at 2.9% to NIS 900 million. The home and personal care market grew by 3.6% to NIS 1.16 billion.

Passover was on April 6 this year, compared with April 18 in 2011, so some holiday sales occurred during the first quarter of 2012, whereas holiday sales in 2011 took place during the second quarter.

Tnuva was hit hard by labor sanctions and partial strikes in March, which cost it market share in the dairy market, affecting this market as a whole. Tnuva's market share fell to 17.3%, in financial terms, in the first quarter from 18.1% in the corresponding quarter.

The Pesek Zman chocolate bar protest during the first quarter did not affect Strauss, and its market share actually rose to 12.5% in the first quarter from 12.4% in the corresponding quarter.

Coca-Cola Israel, which owns Tara Dairy, was weakened due to slow growth in the beverages market, although total sales did not fall. Its market share, in financial terms, fell to 6.5% in the first quarter from 6.7% in the corresponding quarter.

Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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