For the first time since "Globes" introduced its annual brands rankings in 2003, an Israeli brand - Bamba - has managed to overtake the likes of Coca Cola, Netflix and Google, which have dominated the rankings, and climb to number one. The Israeli peanut-butter flavored snack belongs to food manufacturer Osem-Nestle, which itself was ranked Israel's 42nd brand. It is a curious situation when a snack has a higher brand value than its manufacturer.
This has been a year in which a wave of price increases has washed over the country and much has been written about a decline in consumer loyalty. According to Storenext data, in 2022, the share of the ten largest suppliers decreased significantly - by 1.8 market points compared to 2021. However, unlike many brands, Osem-Nestle chose not to raise the price of its popular peanut snack. This fact may also have helped Bamba to prevail over leading international brands.
20 million bags, 31 types in 18 countries
In 2019, when Bamba captured about 25% of the total sales of all snacks in Israel, which was over NIS 1 billion, Osem-Nestle opened the new Bamba factory in Kiryat Gat with an investment of about NIS 250 million. Since then, the production of Bamba has increased by about 30%, and every day a million bags are produced and sent to 18 different countries. In 2022, Bamba's sales were estimated at NIS 351 million, according to Storenext data.
In total, Bamba markets about 20 million bags per month of the various versions that have developed over the years. It seems Osem-Nestlé has never heard the saying: "If something works, it's better not to touch it." Today, at least seven different versions of the product are produced, which are sold in 31 packages of different sizes, including classic Bamba, bear-shaped Bamba, airy Bamba, Bamba filled with halva and even Bamba filled with sweet Bamba cream, as well as a range of special editions. The brand just doesn't stop renewing itself.
Although in recent years there has not been any special investment in advertising the brand on television, Bamba is still known in every Israeli home and stars at every birthday party in kindergarten and school. Perhaps social networks play a bigger role - on Tiktok, the hashtag #Bamba alone has gained almost 40 million views. The hashtag #Osem has gaind 24 million views. Bamba's official Facebook page has about 5,000 followers.
Perhaps a feeling of nostalgia in a year of price increases drives us more than the experts think. Products from childhood trigger in most of us a memory of innocence, and comfort and good feeling that is not related to the taste of the product, but to the whole experience that pervades our being. What does this mean for future consumer trends? This will have to be examined later. And maybe the fact that Osem excluded Bamba from the waves of price increases and chose to keep it at the old price, simply seduced consumers.
Ranked second in the "Globes" brands index was traffic navigation app Waze, followed by Google in third, WhatsApp in fourth and Samsung in fifth. The top ten was rounded out by Microsoft, Super Pharm, YouTube, Nike and Mei Eden.
Published by Globes, Israel business news - en.globes.co.il - on July 20, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.