Israeli winemaker suing El Al bidder's father Kenny Rozenberg

Kenny Rozenberg  / Photo: From Youtube
Kenny Rozenberg / Photo: From Youtube

Eliran Aharonov is claiming NIS 7 million from Rozenberg and his associate Avraham Poupko for his work, knowhow, and connections.

The name Kenny Rozenberg was unknown in Israel until last week when it was revealed that his son Eli Rozenberg wanted to buy El Al Israel Airlines Ltd. (TASE: ELAL). Kenny Rozenberg is the New York-based owner of the Centers Heath Care US nationwide chain of nursing homes. According to the Israeli government's golden-share in the privately-owned national flag carrier, the controlling shareholder must hold Israeli citizenship and be resident in the country. Kenny Rozenberg's 30 year old son Eli Rozenberg, who has been living in Jerusalem's Ramat Eshkol neighborhood for several years is bidding for El Al.

"Globes" can reveal that Kenny Rozenberg has business dealings in Israel through his Tabernacle wine label and he is being sued by winemaker Eliran Aharonov, the 33 year old owner of the Jerusalem Hills Aharonov Winery.

Aharonov has filed a NIS 7 million lawsuit in the Jerusalem District Court against Kenny Rozenberg and his associate Avraham Poupko and against the companies Nakar Prozdor Jerusalem Ltd. and the Tabernacle Winery. He claims that he invested two years working for Rozenberg and Poupko, giving them the benefit of his knowhow, connections and reputation before they showed him the door because they no longer needed him.

Over the two years, he claims, they had been negotiating in bad faith, to set up a joint venture and had illegally made money at his expense.

Aharonov says he met Kenny Rozenberg in 2015 when he was running the family winemaking business at Neve Ilan. Aharonov winery had been operating for 12 years and was producing 20,000 bottles a year.

Through his lawyer Adv. Shai Reshef, Aharonov recounts how Rozenberg presented himself as "the owner of one of the world's successful businesses, a fair man and owner of a huge corporation who dreamed of founding a large and special winery in the land of Israel and to keep all the mitzvoth dependent on the land. He kept urging Aharonov to 'think big.'

From 2016, Aharonov claims, Rozenberg and Poupko gave him to believe that they intended setting up a partnership with him for a large winery in Neve Ilan, which would produce 500,000 bottles per year under the Aharonov brand, together with a visitors center and new vineyards. Aharonov claims he was to be given a 25% stake in the partnership and he would bring his brand, knowhow, connections and prestige. He says the company Neve Winery was set up with Nakar Prozdor owning 75% and Aharanov 25% and during 2017 and 2018 draft agreements were sent back and forth with no agreement ever signed. During that time Aharonov says he worked hard to promote the venture.

Aharonov says that during this time he neglected his own business to promote the new venture and even agreed to Rozenberg's request give up his independent marketing of wine in the US in favor of the joint company.

Aharonov also claims that he was a party tro the joint venture in Moshav Tzuriel in the Upper Galilee, which has already produced 84,000 bottles of wine under the Tabernacle label.

Aharonov is asking the court to award him NIS 7 million in damages, expenses, equipment and wine that belongs to him including NIS 2 million in lost earnings and sales channels in the US and Israel.

Rozenberg and Poupko said in response. "This is a case that has been conducted for a long time in the courts and we will not discuss the claims being clarified there."

Published by Globes, Israel business news - en.globes.co.il - on July 20, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Kenny Rozenberg  / Photo: From Youtube
Kenny Rozenberg / Photo: From Youtube
High-tech credit: Shutterstock 8,300 tech employees left Israel after start of war

Amid increased relocation, Israel's tech workforce has contracted for the first time in over a decade, the Israel Innovation Authority reports.

Donald Trump  credit: Shutterstock Israel can't escape impact of tariffs

Even if Israel obtains relief from the tariff imposed on it by US President Trump, it will feel the global effects of the trade war, analysts say.

Shekel versus US dollar  credit: Tali Bogdanovsky US market slide shakes shekel

The shekel weakened significantly against both the US dollar and the euro at the opening of foreign exchange trading today.

Arik Faingold credit: Nati Levi Israeli autonomous frontend co AutonomyAI raises $4m

Led by Arik Faingold, the founder of cybersecurity unicorn Pentera, AutonomyAI offers a platform that learns and understands the full organizational context and generates code that can be deployed directly to the production environment.

British Airways aircraft  credit: Shutterstock/Jarek Kilian Tel Aviv - London fares to fall as British Airways resumes flights

From June there will be 20-32 weekly flights operated on the popular Tel Aviv - London route by foreign airlines - British Airways, Wizz Air and easyJet.

Partner Partner forms int'l business diivision

The division will be headed by former Bezeq International VP Global Business Nissan Arieh.

Caesarstone kitchen credit: Caesarstone Caesarstone bucks Nasdaq as tariffs boost potential

The Israeli quartz countertop manufacturer company has fallen on hard times due to Chinese rivalry but tariffs could boost its revenue.

ZIM ship credit: ZIM Trump's tariffs torpedo ZIM's share price

ZIM's share price fell 16.4% on Wall Street on Thursday and a further 7.2% on Friday, closing with a market cap of $1.5 billion, wiping out all its gains in 2025.

Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Tel Aviv, Holon, Rehovot, Kiryat Tivon, Shlomi and Beersheva.

THAAD anti missile system credit: The US Army Ralph Scott Wikimedia US deploys more THAAD, Patriot batteries in Israel - report

Amid rising regional tensions the US is bolstering Israel's air defense, Saudi state-owned TV channel Al Arabiya reports.

Tel Aviv Stock Exchange credit: Shutterstock TASE tumbles in Wall Street's wake

Dual-listed stocks have again been hard hit, but the banks are also down sharply.

Donald Trump and Benjamin Netanyahu credit: Avi Ohayon Netanyahu due in Washington to discuss tariffs

According to news website Axios, Prime Minister Benjamin Netanyahu will be the first leader to meet President Trump after the latter's announcement of sweeping import tariffs.

Yoni Assia CEO eToro Credit: PR eToro defers IPO amid market turmoil

The online trading platform had planned to begin meetings with investors this week.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef Smotrich meets wrong man in Washington

Minister of Finance Bezalel Smotrich tried to persuade Secretary of the Treasury Scott Bessent to soften the tariff blow on Israel - only Bessent isn't responsible for the matter.

Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018