Foxnews A food fight is breaking out in the kosher aisle — just in time for Passover next month. Manischewitz and Kedem — two established, national kosher food brands — will be duking it out for the first time over grape juice, a product Kedem has been making since 1958 and one that Manischewitz just launched with grape king Welch’s. Supermarkets have started to get shipments of the co-branded product, which is made in Welch’s facility with rabbinical oversight. Until now, “Kedem was the only competitor in this category that registered,” said David Sugarman, chief executive of Newark-based Manischewitz, “and we felt we could come out with a better product that tastes better.” With $12 billion in annual sales, the kosher food industry is barely growing, so stealing market share is an attractive growth strategy. “No one has been around as long as us,” said Mordi Herzog, chief executive of Royal Wine Corp., which owns Kedem and is based in Bayonne, NJ. Herzog declined to discuss his new competition, which will likely cut into Kedem’s margins. Kedem also makes wine in the Hudson Valley region.
The Welch’s kosher product goes for as little as $2.50 for a 64-ounce bottle, which is a steal compared to Welch’s average prices for Concord grape juice, which range from $3.50 to $4, said Ike Kim, senior brand manager for Welch’s.
By contrast, Kedem’s juice is sold at Walmart for $5.22.
This is great for several reasons.
ReplyDelete1) It will keep the prices down and give the consumer options.
2) This will give the consumer many more options as far as other products are concerned, as well. You see, when Kedem introduced Gefen in Pesach season of '97, rumors have it that they they blackmailed the stores into taking their products. If you did not take Gefen products, you did not receive your Kedem grape juice order - a must have before Pesach. Stores were forced to order lots of Gefen products, and minimize their orders of other companies. They put companies out of business.
Now the market can be reopened for others to compete with Gefen/Glicks/Haddar (harotzachto, gam yorashto?)/Itzkowitz/...
Who is giving the hechsher on this? Hadar tried to do this a number years ago but Welch's is a much bigger threat.
ReplyDeleteHaddar failed as it was an overnight attempt at becoming a full fledged wine producer. It was a response to to Kedem's blackmailing and bullying.
DeleteWelch's entered the kosher GJ market in the early 90's----HEBREW NATIONAL entered the GLATT market in the 80's as GALIL-----we all know that we are dealing with YIDLACH MIT SHTICKLACH---CALL THEM krayco,kenworth,Medek,kemach,mekach or better yet---KISHMICH......
ReplyDelete