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.

For the current My Sixth Sense article, please visit http://www.koshertoday.com/sixthsense.asp

My Sixth Sense is released on alternating weeks with Eye on Kosher, which can be found at http://www.lubicomkosher.com/eyeonkosher.

August 7, 2006

From the Editor’s Desk…

We’re still very much on the big story, which is the war in Northern Israel. The attacks not withstanding, Israel’s food manufacturers are making a herculean effort to keep to export schedules. The tourist trade in the North is already a victim of the hostilities as American Jews pitch in to help. In this country, many kosher purveyors are cashing in on the rapidly growing Chasidic community, the Homowack hotel in the Catskills is not closing just yet and in fact has a name change and some new capital, and the kosher community is preparing for Kosherfest and the Ethnic & Specialty Food Expo. This week we also look at the growing kosher market in Canada and a kosher product with shrimp on the label?

Israeli Food Exporters Struggle to Keep Goods Moving Overseas

Haifa…(Idele Ross and Kosher Today Staff Reporters)…Israel’s food industry is making every effort to keep the flow of goods moving overseas despite the daily barrage of katyusha rockets in the North. It received encouraging news when Zim Integrated Shipping Services Ltd., Israel’s largest shipping company, agreed to increase traffic to and from the Haifa port despite ongoing missile strikes in the area. The manufacturers feel that maintaining the level of export overseas is a key element in keeping Israel’s economy stable. The partial closure of the Haifa port resulted in the rerouting of shipments to the Ashdod port, which saw a 35% increase in the number of containers arriving at the port in mid-July. A manufacturing source in Northern Israel told Kosher Today that the majority of food plants and wineries continued production, albeit on a reduced level. Production at the Dalton Winery, just two miles from the Lebanese border, had virtually ground to a halt, according to Moshe Haviv, the 54-year old CEO of the winery in the hilly Northern Galilee. Its tasting room stood virtually empty, a far cry from the usual 600 customers a day who visit and stock up on cases of Dalton's Chardonnays, Fume Blancs and Cabernet Sauvignons. Mr. Haviv told the Wall Street Journal that he fears that if the war continues, he will have no one to tend the vines and take in the harvest, and an entire season's worth of business will be ruined

Tnuva’s poultry processing facilities in Kiryat Shmona was forced to shut down completely. Competitor Off Tov has offered to assist as it and other business rivals like Soglobeck and Off HaGalil Poultry products struggle to continue their operations. However, Tnuva officials are reported to be less than enthusiastic. Globes reports that Tnuva had initially charged Off Tov with exploiting their plight. Off Tov denies the allegations. Meanwhile, Tel Aviv hosted a successful fair called ‘To the North with Love’. Scores of fruit growers, dairies and gourmet food companies from the war-torn north brought their goods to the Tel Aviv port for a one-day open market. Thousands of people attended the fair which was sponsored by ‘On the Table’ Culinary Magazine and the municipality. Donna Gur, Editor of the magazine told Kosher Today that the smaller food companies are especially suffering since the conflict started over three weeks ago. Hotels and guesthouses as well as restaurants, which are supplied by these companies, have shut down. She said that many of the dairies are forced to throw away thousands of shekels worth of superb cheese products. Ms. Gur also spoke about a lychee farmer who had waited until this year to pick the fruit and until the fair, had no where to sell.

Dozens of workers from Strauss-Elite Ltd., one of Israel’s largest food conglomerates linked up with hundreds of volunteers from both the Israel Defense Forces Home Command and municipalities in Northern Israel, to deliver critical foodstuffs to tens of thousands of citizens who were confined to bomb shelters during the past few weeks. Due to the omnipresent threat of katuysha attacks all along Israel’s Northern border, many grocery stores and supermarkets closed their doors, leaving many citizens without a source of daily sustenance. The Strauss-Elite volunteer brigades donated a variety of foodstuffs including dairy products, salads, cakes, cookies, crackers and sweets to citizens of all ages. In addition, thousands of Strauss-Elite workers dutifully reported to production lines in the North (including hard-hit Nahariya and Upper Nazareth) and South, in order to maintain the flow of consumer goods into affected and non-affected areas of the Jewish State.

Length of War Begins to Impact Tourist Trade Severely

Tiberias…Israel’s tourist trade has been through slow periods before, but with every passing day, say tourism officials, the latest Lebanese War may have a devastating impact on the tourism trade in the North. Luxury hotels stand totally deserted as most have laid off staff, many of which have been mobilized by the IDF or have moved South, away from hostilities. Several smaller hotels are hinting that if the war goes on much longer, they may never be able to reopen.

To help the hotels in the North, the Conference of Presidents of Major American Jewish Organizations has launched a “virtual tourism” campaign. Malcolm Hoenlein, the executive vice president of the organization told Kosher Today that “prospective tourists can make reservations for Israeli hotels online and use them until June 30, 2007.” The program allows travelers to choose between hotels, guesthouses and bed and breakfasts in eastern, western or central Galilee. The initiative aims to raise $1 million for Israel’s hard-hit tourism industry.

With the drastic reduction in the number of tourist visiting Israel, hoteliers are voicing concern that unless the hostilities in the North end soon it may be too late the salvage the upcoming holiday season in the Fall.

SPECIAL FEATURE: Many Products Benefit from Rapid Growth of Chasidic Community

Kiryas Joel, NY…There is a crucial vote in Woodbury, NY this week as residents seek to incorporate the town into its own village to stem the growth of neighboring Kiryas Joel, which is already a village. The Woodbury residents are hoping that they will be able to create zoning regulations that will keep the large Chasidic families from Kiryas Joel from expanding into their community, a strategy that has previously failed in such places as Airmont, NY where the courts took a rather hostile view of such measures to curtail growth by a community. The upshot of the developments here is, say community leaders, “is that the community is bursting at the seams,” a fact that many kosher purveyors seem to know well. It is also the reason why Chasidic groups like Skwer and Bobov are also looking elsewhere to develop housing for young families. Kosher Today reported last week that the two Chasidic groups had purchased hotels in the Catskills to facilitate such growth.

In this community of 18,000, the local Landau’s grocery carries a plethora of kosher products, but most carry the endorsement of Chasidic certifying rabbis or from the Central Rabbinical Congress (CRC- Hisachdus Harabonim). For example, the store carries soft drinks by Mayim Chaim but not from Coca Cola. Other familiar brands in the store include Kedem, Gefen, Klein’s, Golden Flow and Mehadrin. The natural growth of the Chasidic community is driving sales in these communities to new heights. One kosher manufacturer says that the Chasidic and several other Orthodox communities (including Monsey, NY and Lakewood, NJ) were responsible for most of his 18% sales growth last year. While many Chasidic women shop in major supermarkets, they generally purchase foods with the “acceptable” certifications. Some retailers say that this is true only for certain categories of foods, namely meat and dairy. But groceries in these communities carry “heimishe” (known community) items even in such categories as snacks, cereals, and salad dressings. Israeli items are also sold in these stores, but most with the certification of the Badatz of the Eida Hacharedit in Jerusalem.

The Proof is in the Product, Not the Label, Israeli Couple Learns

Tel Aviv…The story on YNet News of a product that was labeled as having shrimp but did not due to the manufacturer’s desire to save costs on reprinting the label is part of a growing problem in Israel. Importers who distribute foods from Europe and the USA routinely retain its original label. Instead, they simply add a sticker with information in Hebrew. This can be problematic since the foods may not be kosher in the host country but made specifically kosher for export to Israel. In the shrimp case, a couple who bought a red curry dish at the Blue Square branch of the Ayalon Mall in Ramat Gan noticed that the kosher product included shrimp paste on the ingredient list. The packaging of the dish, imported from Thailand by Oriental Food Imports Ltd., noted that the product was Kosher Pareve and certified by the Chief Rabbinate. It also mentioned that it was certified for use by Badatz (a more stringent kosher certification). In fact, according to the importer, the product sold in Israel only includes vegetarian ingredients. Said Oriental: "As part of the research and development process, the company launched an experimental kosher curry dish in 2005. Our curry dishes were produced under the strictest production processes and rabbinate supervision.” The company spokesman added that all the ingredients are indeed vegetarian, and should the company continue marketing the product it promises to change the labels. Sources in Israel told Kosher Today that labeling is an issue with many imports but that Israeli consumers “take it for granted that the Hebrew stickers override the foreign language product information.” The Chief Rabbinate promised to further look into the problem.

Toronto Kashrus Agency Makes Changes to Meet Growing Challenges

Toronto…The rapidly growing demand for kosher products in Canada has prompted one certification agency to make important changes in its leadership. The Kashruth Council of Canada (COR) announced that Rabbi Yacov Felder has been appointed as the Vice Chairman of the Rabbinical Vaad Hakashruth and Rabbi Sholom Hersh Adler has assumed the newly created position of Executive Rabbinic Coordinator. COR is Canada’s premiere kosher certification, representing over 45,000 products and services. In this position, Rabbi Felder will assist Rabbi Yitzchok Kerzner, who serves as Chairman of the Vaad, and will be involved in a full range of responsibilities related to kashrus policy and supervision. Canadian kosher food sources say that kosher has been growing at a pace that is on par with US growth, although “proportional to the size of the Jewish population.” They also say that like the US, kosher is being increasingly purchased by many non-traditional kosher consumers such as Muslims, vegetarians, and the health and quality conscious.

Despite Sale, Homowack to Continue Operating… “For Now”

Spring Glen, NY… A report in Kosher Today that the Homowack Hotel has been sold to a group affiliated with the Chasidic group of Skwer, located in New Square NY, was confirmed by a spokesman for the hotel. But the hotel does not face imminent closure, as the report indicated, says Sam Ash of the Homowack. In fact, said Ash, the hotel is preparing a number of changes to cater to an even broader spectrum of kosher observing Jews. Significantly, the Homowack name will be relegated to history as the resort will be known as the "Spring Mountain Resort." Irving Fruchter, the Homowack's most recent general manager, will return to manage the resort. The hotel is also upgrading its infrastructure, including its foodservice (which will continue to be under the kosher supervision of the Orthodox Union – OU), back office/operations, and housekeeping personnel. The management has already initiated capital improvements, including air conditioning for the common areas. One other major change is that the hotel will now offer full time "separate swimming," eliminating its customary coed or family swim. According to Mr. Ash, the hotel hopes to be operating at least through the end of the summer, High Holy Days, and Sukkoth. “Guest and group prices will be adjusted to meet the realities of large Orthodox families."

Show Time Draws Nearer for Kosher Purveyors

New York…With three months remaining until the 2006 edition of Kosherfest, booth sales are well ahead of previous years, according to Brian Randall of Diversified Business Communications, which co-produces the show with LUBICOM Marketing Consulting. Scheduled to take place November 14-15 at the Jacob K. Javits Convention Center, this year’s event is expected be the largest in the show’s 19-year history and will attract hundreds of first-time visitors. The reason is the co-location of the show with two other ethnic trade shows, the All Asia Expo and Expo Comida Latina as well as the International Hotel & Motel Show.

In September, a number of food purveyors are expected to exhibit at the Ethnic & Specialty Food Expo including the All Things Organic pavilion at the International Centre, Mississauga, Ontario. Sponsored by Diversified Business Communications-Canada, some 40,000 buyers were invited to the event, which will take place September 10-11. Buyer response has been overwhelming; current exhibitors will have the chance to do business with buyers from A&P, Aramark Canada, Arcop, Bulk Barn, Cara, Costco, Gordon Food Service, Hasty Mart, Loblaws, Longo Brothers, Mandarin, MacDonald's, Mega Wraps, Pusateris, Sears, Sobeys, and Wal-Mart., Sysco and Sunoptra. Exhibitors will also have the opportunity to accelerate export sales by meeting one-on-one with several key US buyers, sponsored by Agriculture and Agri-Food Canada. These private, highly profitable meetings will take place on-site before the doors open on both show days.