The Sixth Sense
LUBICOM Kosher CEO Menachem Lubinsky is the founder and co-producer of Kosherfest, the annual trade event for the kosher food & beverage industry and is the editor-in-chief of KosherToday. The views expressed in this column do not represent the opinions of KosherToday’s publishers and are those of the author alone.
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My Sixth Sense is released on alternating weeks with Eye on Kosher, which can be found at http://www.lubicomkosher.com/eyeonkosher.
April 24, 2006
Passover 2006 Roundups: Retail Sales Soar
New York...Sales of kosher for Passover foods were predictably strong during the just concluded holiday. Industry sources say that sales increased by an average of 10% - 15% with some stores in the New York metro area reporting as much as 20% growth. But success was not universal as there were some reports of stores where sales were flat. Wines (including many new offerings) and as expected new products were key components of the surge. In a startling twist this Passover, retailers reported an unprecedented demand for more healthful products, including pre-packaged salads, spelt-free, sugar-free and even organic foods. Many articles in Jewish weeklies focused on preparing healthy diets for Passover, including using organically fed poultry and organic eggs. Even Israeli companies like Tnuva emphasized eating healthier on Passover. Internet sites, including www.kosher.com, also reported strong sales. Special hotel programs for Passover were generally sold out, but there were reports of some “soft spots” as a number of hotels scurried to fill rooms at the last minute. Fire changed the plans of some 300 vacationers at the Villa Roma hotel in New York’s Catskill Mountains. But unusual cooperation amongst program operators resulted in the relocation of the guests to other nearby hotels including the Nevele Grande, Ulster County’s Homowack Lodge and Westchester’s Rye Town Hilton. The day after Passover was once again a hectic time for retailers as it fell on Friday on the eve of the Shabbat and when people restock their pantries. One store in Brooklyn heavily discounted Matzos and other Passover items with a sign “Stock Up for Passover Now.” The sign was referring to Passover 2007.
Non Jews Buy Kosher: So What Else is New?
Cincinnati...When the Enquirer recently published the story that many non-Jews buy kosher in the city, it really was not news to those who have been following kosher over the past two decades. In the past year alone, studies like Mintel and other industry reports confirmed the broad appeal of kosher, well beyond the core group of people who observe kashrus. It was also no secret to many in the food industry, for example, that many non-Jews bought Matzos and macaroons on the eve of Passover, and not only because some non Jews participated in a Seder. Some non-Jews like the products; others think of the Matzoh as a healthy alternative to breads. Several supermarket executives in the city interviewed by the Enquirer confirmed that they sell a good deal of their kosher fare to non-Jews. “Most of the growth in kosher food is coming from non-Jews,” said one. “A lot of people in general have the idea that kosher food is healthier, safer, more strictly inspected," says another. "Vegetarians buy kosher and people with allergies and food intolerances are interested in kosher products," says Gladys Blatt, owner of Bilker's, a kosher market in Blue Ash. “And, with thousands of items to choose from in both mainstream and specialty stores, it's a good time to explore the kosher possibilities,” advises the daily.
Israelis Cut Back on Passover Spending but Food Sales Were Stronger than Ever
Tel Aviv...A report in the Ha’aretz daily that retail sales were lower than expected during the 7-day holiday did not include Passover foods bought before and during the holiday, especially in religious communities where sales were said to have increased by well over 10%. According to clearing company Gamma, this year’s retail purchases in general over the holiday was 7.5% off last year's figure, and lower than the Passover 2004 average. The Gamma study is for the holiday itself when large number of Israelis travel to resorts and other attractions and are not really spending time in shopping malls. Some food stores in Jerusalem reported increased sales of more than 20% over last year. Observers were struck at the unprecedented array of new products, including many new dairy items. Sources in Israel say that more than 70% of Israelis observed Passover in some fashion, with an equal number eating Matzos during the 7-day holiday. Sales of Matzos were said to have achieved record sales.
Ill Fated Baby Formula Returns to Shelves
Jerusalem...A vegetarian baby formula that left three infants dead and several others with brain damage has returned to grocery shelves. It was nearly 3 years ago that Remedia, then the leading baby formula brand in Israel, was pulled from shelves. Heinz had owned 51% of the company before selling it to Yuval Levy. The deaths were blamed on the formulation of the product by the Humana factory in Germany. The raw materials are now being imported from “Farly” in England. The final product will be manufactured in Israel, according to the Ha'aretz daily's financial publication The Marker. The decision to re-launch the product was made by the new owners with the name being altered to New Remedia. Meanwhile rumors persist in Israel that Heinz is eyeing Tivall, a subsidiary of Osem which is partly owned by Nestle.
A New Kosher Fish Debuts in England
Manchester, UK...The traditional popular fish and chips menu may have a new addition. According to the Jewish News, kosher consumers in Britain now have another fish to add to their culinary repertoire, New Forest barramundi. The Australian fish has long been available to Jews down under. Betty Solomon of Melbourne's Mizrachi department, who confirmed that it is kosher if it has fins and scales, had not actually eaten it herself. The fish can be baked like trout, mixed with seasoning in cutlets, but she advised not to make gefilte fish with it as it might be too expensive! The fish, farmed in the British New Forest, is reported to taste like sea bass or Dover sole.
Kosher Companies in Gunsights of US Food Giants?
Chicago...If a recent report in Crain’s is correct, larger food companies may be eyeing small niche food companies as a means of boosting margins. The business publication quotes Brian Boyle, managing director of RSM EquiCo Capital Markets, as saying that “multi-billion dollar companies are moving into our segment, buying $30 million and $40 million businesses, and I think there will be a lot more of that activity. That wasn’t as frequent in the 1990s,” says Mr. Boyle, who heads the bank’s food and beverage practice out of its Chicago office. “In the past, it was all about getting scale. Now, big companies are moving downstream, looking for niches in the market that bring high growth and better margins.” Mr. Boyle says he expects big food companies to go after natural and organic food companies and makers of ethnic and diet foods. “I think we’ll be seeing less of the multi-billion dollar deals,” he says.
Passover Makes a Comeback in the Ukraine
Donetsk, Ukraine...Thousands of Jews celebrated Passover in the Odessa, Kharkov, Donetsk and Zhitomir regions, thanks to the assistance by the FJC Ukraine. Jews of Ukraine received more than 80 tons of kosher Israeli matzah for Passover. In order to enable community members to hold Seders at their homes, Jews were given the opportunity to purchase handmade matzah shmura, which was baked in the Dnepropetrovsk matzah-bakery. According to the FJC, a special booklet was published for Jews who arrange home Seders about the traditions, meaning and laws of this holiday, as well as issuing a Haggadah illustrated with colorful images. These booklets, which also included a festive address from Chief Rabbi of Ukraine Azriel Chaikin, were forwarded to Jewish communities throughout the country. The FJC sponsored public Seders in 206 Jewish communities across Ukraine. To ensure that ceremonies and celebrations take place in full accordance with Jewish tradition, 96 rabbinical students from Israel traveled here to assist in holding 114 Seders in settlements that do not have a resident rabbi. In general, this year’s Passover Seders involved about 40,000 Jews across
Philippines Government Sponsors Trade Seminar on Kosher
Manila, Philippines...The government of the Philippines sponsored a special seminar on kosher for small and medium-size businesses about opportunities in kosher last week. The seminar was sponsored by the Bureau of Export Trade Promotion of the Department of Trade and Industry. “The seminar aims to provide information on the concept of Halal and Kosher Food Standards and Certification process as the global food industry considers the Muslim and Jewish population as a considerably big consumer market segment,” the invitation read.