The Kellogg’s – Israel Connection Unraveled

Kellogg’s, a global giant commanding a significant share of the breakfast cereal market worldwide, recently made headlines by selling its Israeli franchise to S. Schestowitz Ltd. for a reported $15 million.

This shift in strategy signifies a significant change in Kellogg’s approach to the Israeli market, an arena where it has lagged behind competitors.

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Transition in Kellogg’s Israeli Franchise

Despite its dominant presence globally, Kellogg’s has struggled to maintain a substantial foothold in Israel, allowing competitors like Telma and Nestle to secure larger market shares. Kellogg’s reportedly controlled only 11% of the Israeli market, trailing significantly behind Telma’s substantial 63% and Nestle’s 12% market shares. While the Israeli breakfast cereal market experienced robust growth, Kellogg’s found itself falling behind.

Schestowitz’s Foray and Business Shift

The sale of Kellogg’s Israeli franchise to S. Schestowitz Ltd., primarily known for its ventures in cosmetics and toiletries, marks a significant change for both companies. Schestowitz, having recently entered the food sector and importing established brands, has signaled an intent to diversify its business portfolio. This acquisition reflects Schestowitz’s ambition to expand into the food industry, potentially reshaping the market landscape.

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Kellogg’s decision to sell its Israeli franchise to S. Schestowitz Ltd. represents a pivotal shift in its approach to the Israeli market. While aiming for a stronger market presence, Kellogg’s faces persistent challenges and criticisms, particularly concerning its use of genetically modified organisms (GMOs).

Addressing these concerns and ensuring transparency about product safety measures will be critical as Kellogg’s navigates this transition and seeks to regain consumer trust and market share in Israel’s competitive breakfast cereal industry.