Shufersal Goes To Battle With Coca Cola

Shufersal’s private label cola takes on coke

Sufersal cola Photo: Amir Schneider

Anyone going to the soft drink shelf to stock up for the weekend must have seen something that made him do a double-take. The financial media did report weeks ago that Shufersal Ltd.  was likely to enter the soft drinks market, among other things by importing regular cola and sugar-free cola produced in a factory in Turkey owned by Japanese company DyDo.

No one, however, expected to see the following sight: on one side of the shelf, a line of Coca Cola bottles, and right after it, a line of Shufersal cola bottles with a design so similar that it could fool even people with good eyesight. The bottle, designed especially for Shufersal, is almost identical. The colors, red and white, are identical; the cap’s color and form are identical, and other than the rather modest title, “Shufersal,” the bottles are so similar that the naked eye can certainly make a mistake.

This, of course, is no coincidence. Shufersal began doing its own shelf arranging several years ago, and manages and orders its shelf space by itself, a change that increases its power and reduces its dependence on the large suppliers. This fact enables it to position its private label cola on the shelf between Coca Cola and Diet Cola and Coca Cola Zero, all of which are made by the Central Bottling Company (Coca Cola Israel).

The pricing of the new product is also a declaration of war. The official Shufersal unit price is NIS 4.30; however, buying two four-packs reduces the price to NIS 3.12 a bottle. At Shufersal, Coca Cola costs NIS 6.90 per bottle, meaning that the Shufersal product costs less than half as much – nothing less than a revolutionary price. Shufersal’s private brands are usually priced 25-30% below the leading brand in the category, so it appears that in this case, the chain has decided on total war.

The combination of the resemblance and the shelf arrangement are an official declaration of war against the Central Bottling Company. In the near future, Shufersal is expected to also begin selling its private brand of mineral water and a broad range of juices, thereby further strengthening the chain’s private brand, which reached a 21% share of sales in the first quarter of 2017.

The beverages are manufactured by DyDo, which engages mainly in the development, production, and sale of beverages, among other things to China, Russia, Malaysia, and Turkey. Shufersal’s cola is produced by a subsidiary, Della Gida Sanayi ve Ticaret, founded in 2001. Della Gida’s production site in Turkey constitutes a strategic point for deliveries to Europe and Israel.

Sales of non-alcoholic beverages, estimated at NIS 2.7 billion a year, are mostly dominated by three companies: the Central Bottling Company (Coca Cola Israel), Tempo Beer Industries , and Jafora Tabori. The cola market in Israel is estimated at NIS 1.6 billion. The Central Bottling Company’s monetary market share in 2017 is 89.6%, i.e. almost total dominance. In brands, competitors Pepsi and RC have only a 10% combined market share.

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Good luck with this one!  We doubt they can match Coca Cola for taste.  Just as Osem brand ketchup is not match for Heinz, so, too, we suspect this product will fall short.    Remember when you were a kid, and your mother brought home some vile tasting, no name brand of cola?  Wanna place a bet?

Posted on September 29, 2017 at 12:02 am by Rabbi Jeffrey Rappoport · Permalink
In: General Topics, In the Home, Kosher Kitchen, Kosher New Products, Kosher News

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