The biggest winners include Strauss, Osem and The Central Bottling Company. Strauss increased its share from 9.5% in 2024 to 10% in 2025, Osem rose from 6% to 6.2%, and The Central Bottling Company advanced from 5.2% to 5.4%. The growth came even after major suppliers raised prices sharply, suggesting shoppers did not switch in large numbers to cheaper alternatives.
Industry sources said the shelved exemption was based on a misunderstanding of why large suppliers dominate. One executive argued that retailers also prefer big brands because they sell at higher prices, generate stronger shekel margins, and reduce the need to stock slow-moving items. A retailer added that consumers remain attached to leading brands and are not willing to give up products such as Elite coffee or Coca-Cola, even when parallel imports are cheaper.
The Competition Authority had long believed shelf-stocking by suppliers reinforced concentration and worked through the Food Law to limit it. Although the ban was delayed for years, it took effect at the start of 2025. Since then, large suppliers may stock only at major retailers where non-large suppliers account for at least 55% of sales, excluding fresh produce, with the threshold set to rise to 60% each year. Large suppliers laid off their merchandisers, but retailers and suppliers now accuse each other of making the system worse.
