Jaf-Ora Tabori, Kibbutz Ein Gedi Invest $5.5 Mln Setting Up Mineral Water Plant

The concern reached a trial overseas marketing and distribution agreement with Schweppes. Marketing of the water in Israel - within a month.

Jaf-Ora Tabori and Kibbutz Ein Gedi recently completed the establishment of Ein Gedi Mineral Water Plant, at Naot Ein Gedi. The plant was set up at an investment of $5.5 million, with each side holding 50% of the shares.

The concern intends to market water in family -size and half-litre bottles within about a month. The plant was set up by two French companies which specialise in building mineral water plants.

The new water plant received approval from the Ministry of Health and the Ministry of the Environment. Only five workers will be employed at the plant, because of its advanced technology.

The volume of mineral water sales in Israel is estimated at about $35 million per annum, with 90% of the market divided between Neviot and Mei Eden (Eden Springs).

The new plant is at first going into production of bottled water only. The volume of this market is estimated at about NIS 90 million per annum. Jaf-Ora Tabori GM Eli Davidai refused to give detailed forecasts of first year sales volume. He said that the plant had reached an agreement with Schweppes, under which Schweppes will market the Ein Gedi Plant’s mineral water on a trial basis in South Africa, Germany, and Britain. Schweppes does not produce mineral water. If the trial is a success, the company is expected to broaden the marketing of the Ein Gedi mineral water. Jaf-Ora Tabori is the Scheweppes franchisee in Israel. Davidai also said that the new company is conducting negotiations with the Majdali family in Jordan about export of the mineral water to Jordan.

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