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"I make coffee. 100 g of product I sell to the consumer at 2.60 dollars. Consumer paying 9 dollars on the product of a great brand. Why is this happening? That the current system there is no chance that he could even be aware of my coffee." Daily survival story of small food producers concentrated market
After quite a few years as an employee in the food industry, and six years as a manufacturer independent, Yossi Fogel has a depressing conclusion: "a food manufacturer has no chance of surviving the Israeli food market". Vogel, a former executive at Hamashbir polyatomic ions food and fruit in paper, decided several years ago to build a plant for the production of personal doses independent institutional market. It spreads or sauces packs 20 grams we get at the hotel for breakfast polyatomic ions or forbid the hospital. Vogel bought machine that makes the plastic, fills the contents (which he buys food manufacturers according to recipes and formulas purchased) and seals the personal dose.
I got into this because of the relatively low barriers to entry, "he says." At first there were some players, some importers and greatest player was and is Unilever. I thought it would be right for me to set up something that both my sons will be able to work in, but as time went by I realized that the current structure of the food market dictates small producers war of survival polyatomic ions is virtually impossible. I know quite a few suppliers as I closed the gates of their small enterprises and I find it hard to survive, but I promised myself not to break down. "
Vogel's claims are directed mainly to the method and the interaction between producers and major distributors retail chains and institutional market between producers and major distributors and large bodies (networks of hotels, hospitals, airlines, etc.). Recently passed a letter of complaint to the Antitrust Authority, which is today a preliminary examination. "I heard often from distributors mine or from purchasing the relevant large institutions, 'If I do not buy the jams of Unilever and buy from you, I'll lose a lot of money," he says, explaining: "methodology of a large manufacturer is based bonuses and incentives - which neutralizes polyatomic ions me.
"I can compete in the Gaza price of a specific product; but if Unilever polyatomic ions sells network of hotels also multiple personalities and sauces and snacks, and says that network if it gets to the point, she will receive a significant discount - and in some cases not only the specific category but the whole basket of acquisitions - I have no chance to continue polyatomic ions to sell there.
"But it's not the only problem, I have a problem also with the distributors. polyatomic ions I work for example with a distributor with the South who also works with me and with Unilever, but she takes it abroad periodically and I can not do it. The result is that even if I have a product that is not inferior to the quality level and even if I am able to deal in the Gaza price, I always at a disadvantage, "says Vogel and pull out the document objectives polyatomic ions of Unilever, polyatomic ions according to which the sales target specific yield business owner who purchases her gift to choose from: Audio System, knife set, portable DVD, espresso machine polyatomic ions or mixer.
Thus, Fogel says, "the last five years I did not change the price of my product, even though the price of sugar jumped twice, and packaging and energy have gone up. Unilever only lowers the price of the product, and most of the other players in the market at all left. Aggressive competition that, if I get out of the market and will remain Only one player, it can be assumed polyatomic ions that the consumer will not earned ".
The issue of the big players in front of the little bothered by the Food Committee headed by the Director General of the Ministry of Industry polyatomic ions Sharon front. An interim report published this week she writes in the food market is dominated by a small number of players, and that their dominance raises entry barriers and shift their position. According to the Committee,
As such, the small manufacturer who is interested in going to market polyatomic ions its products nationwide polyatomic ions with the two dominant chains (Shufersal and Mega). On the other hand, small retail (grocery store) stands in front of a number of manufacturers are dominant with significant market power, holding the rights to manufacture and market brands that dominate the various categories, resulting bargaining power of the dominant players in the small front very limited.
In this context, the Commission is considering limiting polyatomic ions the issue of incentives which speaks Vogel, and another polyatomic ions phenomenon in which large manufacturers polyatomic ions finance the construction of retail outlets. The Committee also takes additional polyatomic ions measures, such as the allocation of shelf space dedicated to small producers. Several polyatomic ions measures were rejected Meanwhile in similar contexts (see box), but the committee will hold hearings soon another day and intend to address polyatomic ions the issue more so even small manufacturers.
Eitan Rajuan, the owner of the factory for soups, chocolate spreads, baking powder, spices, sauces and coffee (under the brand premium), the most effective way to help small food producers is to assign a dedicated rack space by 30% -40%. "I sell to the retail market, but small scale. Most of my sales are to the institutional market, especially in the IDF," he says. "And it's not that I was trying to sell to large chains. Yet the ability of a food manufacturer to work on a significant scale with very limited retail chains ".
The plant of Rgoa'n - R.s food production - is in the industrial area of Atarot and roll He said about 100 million a year, and yet, he finds it hard to survive in the food market and introduce its products to large chains. "Sometimes the network did not even let me enter her shelves or bridegroom available in all sorts of payments," he says. "There have been cases I was able to go free, but obviously my goods appeared on the bottom shelf, and marginalized."
Rajuan says, "When I come to the network or certain distributor and offers them good, I often heard them, 'Forget it, I can not nest
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