Ever since Osem entered the packaged, ready-to-serve cake market with its Habayit Cake line, pushing aside then-market leader Elite, the two companies have been locked in battle. Elite, forced to combat a strong foe in Osem, suffered a significant cut in its market share. Osem, which came in with new products and packaging, took a bite out of Elite.
According to data supplied by Market Share, the most popular cake sold in 1996 was Osem’s Habayit chocolate chips cake. Out of the total packaged, ready-to-serve cake market, including roll cakes which Osem does not manufacture, Osem’s market share was 43.5% and Elite’s - 31% in terms of weight. In financial terms, Osem’s market share was 39% and Elite - 27%.
Special notice should be made of a clear trend in the packaged, ready-to-serve cake market: Elite’s market share, which dropped sharply from May to July 1996, is now on a gradual rise. For the first time, in December 1996, Elite surpassed Osem, in terms of sales volume and revenues, with a 38% share. Osem’s market share has been in a gradual decline since July, reaching 35% in December. In the field of cake mixes, Osem is the undisputed market leader.
Yoram Dar, head of marketing and trade at Blue Square (Co-op), estimates market share for Osem’s Habayit Cake at 58% of the dry cake market, and Elite’s share at 32%. Super-Sol puts Osem’s Habayit Cake market share at 53% and Elite’s at 35%. Sales in this category increased 46% in 1996. Dar emphasizes that the majority of sales are of Israeli-made packaged, ready-to-serve cakes. This market, he says, began flourishing after Osem launched the Habayit line.
In December 1996, Elite’s marble cake and chocolate chip cake outsold all other packaged ready-to-serve cakes on the market. Number three on the list was Osem’s chocolate chip cake, followed by Elite’s chocolate cake and nut cake, Osem’s coffee and nut cake, and chocolate chip-yogurt cake and Elite’s chocolate-covered, chocolate/cream roll cake.
The packaged ready-to-serve cakes market for 1996 is estimated at NIS 180 million in terms of retail price, including VAT.