Sources inform “Globes” that Tara Agricultural Producers Cooperative Society (Tara Dairies) expects a NIS 10 million loss for 2004. Central Bottling Co. (Coca-Cola Israel), which acquired Tara Dairies, faces the challenge of restoring the company to profitability in 2005.
Tara Dairies will operate as an independent company, in the same manner as Coca-Cola Israel's other subsidiaries: Prigat fruit juices, Neviot Mineral Water Ltd., and Israel Beer Breweries (Carlsberg Israel). However, some Tara Dairies activities that are synergetic with the group's other businesses will be merged, including distribution and operations.
Tara Dairies' 38 member-cooperative yesterday completed its sale to Coca-Cola Israel. The final sale price was $37 million, plus an additional NIS 40 million in compensation to Tara Dairies external distributors, whose contracts have been terminated. Coca-Cola Israel will use its own distributors for Tara Dairies products.
"Globes" reported in April that Coca-Cola Israel signed an agreement in principle to acquire 100% of Tara Dairies' assets from the cooperative's owners. For the purpose of the transaction, Coca-Cola Israel set up a separate business entity. The deal does not include Tara Dairies' holding in Ramat Hagolan Dairies Ltd.
Tara Dairies control 12-14% of Israel's dairy market. It has 600 employees and posted $125 million in sales in 2003.
Published by Globes [online] - www.globes.co.il - on October 13, 2004