Sources inform “Globes” that on the eve of Tnuva’s entry into the soy milk market, Belgian soy milk manufacturer Alpro is negotiating a franchise to manufacture its soya beverages with Strauss, Osem-Nestle subsidiary Tivol, and apparently Coca Cola Israel (the Central Bottling Co.) also. Alpro, which currently dominates the soy milk market in Israel, has marketed its products in Israel for a decade, though Beit Teva Kal, controlled by the Shapira family. The company currently faces competition from Zuriel Bros. Farm, an Israeli manufacturer.
Alpro’s franchise negotiations are a result of Tnuva’s impending entry into the market, and the trend away from UHT to chilled soya milk, which is commonly used worldwide, and recently also in Israel. Alpro will have to decide soon with whom to reach an agreement, since its agreement with Beit Teva Kal expires in June 2003.
Beit Teva Kal markets a number of brands to natural food stores, containing vitamins, pompadour tea, and dijon mustard, but estimates are that Alpro accounts for 75% of its soy milk sales.
Annual sales of soy products are estimated at 6,700 tons, and soy milk beverages constitute 75% of these sales, while yoghurt and dairy delicacies are 25%. An Alpro survey in Israel showed that 26% of the population consumed beverages based on soy milk in the past year.
As reported in “Globes”, Tnuva will enter market for soy milk-based products within two months, after acquiring Magic Soy, which specializes in soy-based products, for $10 million. Osem-Nestle and Strauss also held acquisition negotiations with Magic Soy.
Tnuva’s initiative is one of the reasons why Zuriel Bros. Farm, which also makes soy products, is considering joining a large food corporation through the sale of 50% of its shares. Tnuva’s entry into the field will put Zuriel Bros. Farm in an inferior position, especially where distribution, advertising, and marketing support are concerned. Zuriel Bros. Farm therefore needs to join a large food concern that can provide logistics and marketing solutions.
The soy market, which has been growing 30-40% per year, is very profitable for both the manufacturers and the retail chains.
Published by Globes [online] - www.globes.co.il - on November 10, 2002