Globrands Group, one of Israel’s largest distributors of consumer and tobacco products, said in a morning regulatory filing that JTI has decided not to renew its Israeli distribution agreement. The news sent Globrands’ stock down 34% on the Tel Aviv Stock Exchange.
The current distribution contract with JT International SA is set to expire in February 2027, but the company said the break stems from a commercial disagreement between the sides. JTI has already chosen another distributor for its brands in Israel, including Camel, Winston, L.D. and Natural American Spirit.
Globrands said the loss of the business will materially hurt its results. Sales of JTI products accounted for about 46.2% of consolidated net sales in 2023, 45.3% in 2024 and 45.1% in 2025. Based on internal data, management estimates the lost franchise could reduce annual net profit by about NIS 35 million compared with 2025.
The company stressed that the estimate is forward-looking and does not include possible offsetting changes in revenue, efficiency measures, product mix or the broader economy. In the filing signed by CEO Roy Amit and deputy CEO Amir Doron, Globrands also said JTI’s decision is unrelated to its separate distribution agreement with BAT and that there is no connection or dependence between the two deals.
Globrands said it is now examining strategic options for the period ahead, including working with suppliers from entirely different sectors in order to use its existing sales and distribution network and cut costs.
