Is Tnuva's leadership in the consumer products market under threat? According to Storenext figures that have reached "Globes", Strauss Group Ltd. (TASE:STRS) held a 10.3% market share in the first five months of 2018, while Tnuva held 13.6%, which compares with 13.8% in the corresponding period of 2017.
As far as is known, this is the narrowest gap between the two companies in the past five years at least, with the trend being an increase in Strauss's share of the Israeli market and a continuing decrease in that of Tnuva. Both companies are active in food and beverages, which account for the major part of the consumer goods market.
Storenext data for the food and beverages market show that in the first five months of 2018, sales totaled NIS 15.45 billion, 3.1% more than in the corresponding period of 2017. Sales in May were over NIS 3.3 billion. This is the highest sales figure for May in financial terms at least since 2015.
The Storenext figures indicate that all the major manufacturers and suppliers have recorded sales growth since the beginning of this year, from growth of just 0.4% for Neto (excluding fresh meat and fish), to growth of more than 8% for Diplomat and for Jafora Tabori, which is about to become a public company when the stake in it held by Clal Industries is offered on the Tel Aviv Stock Exchange. Sales by Osem-Nestle rose 6%, and Strauss's sales rose 5%.
Tnuva, which has been running very aggressive sales promotions, saw sales growth of 2.5% to NIS 2.46 billion. This has not prevented it from continuing to lose market share relative to its main competitors, chiefly Strauss and Osem, which increased their market shares by 1.75% and 3.2% respectively.
Tnuva held a 15.9% market share over the five-month period, which compares with 16% in the corresponding period last year. This month, Tnuva seems to have halted its sales promotions, and it will be possible to examine the effect of this next month.
Another major company that has lost market share is Central Bottling Co. Ltd. (Coca Cola Israel), held by Tara Dairy. In the first five months of this year, its market share fell by 1.4% to 6.9%. In the corresponding period of 2017, its market share was 7%.
Published by Globes [online], Israel business news - www.globes-online.com - on June 11, 2018
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