If we suspend distribution of Yotvata products, following an
agreement due to be signed between that company and Clal, we will flood
the south of Israel with Tnuva products. This comment came today from
Erik Reichman, general manager of Tnuva.
Reichman stated that in distributing Yotvata products in the south of
Israel, Tnuva gives them preference over its own products. Reichman
volunteered this explanation in view of the geographical proximity of
Yotvata to the markets of the south, for which its products are
earmarked. Tnuva, claims Reichman, has so far not been pushing its
products in that area, as having an understanding and an agreement with
Yotvata.
In the area of the south, Yotvata markets drinking milk, fluid
products such as yoghourt and sour milk, and various types of cream
cheese. In the north, Yotvata markets primarily soft beverages in
cartons and cheeses with additives.
Uri Shani, chairman of the Yotvata Dairy, said in response: "I
believe in healthy competition. The residents of Eilat and the south
will have to decide whether they prefer our products or those of
Tnuva. I still hope we can negotiate some form of understanding with
Tnuva".
The comment of Clal was that the agreement with Yotvata will be
signed in any event, and that they hoped a compromise would be reached
with Tnuva. "The company has a strong interest in continuing its
business and commercial co-operation with Tnuva. And we will make
every effort to keep Tnuva in the marketing picture", said the Clal
representative