Miniline in Talks for Chinese GREE Air Conditioner Distribution Rights
Translated & summarized from Calcalist by baba
Miniline is in talks with Chinese manufacturer GREE to become the exclusive distributor of its air conditioners in Israel. This move could disrupt the market, as Tadiran, a major Israeli air conditioner company, currently relies heavily on GREE for manufacturing. Tadiran, however, believes its significant purchase volume will ensure continued supply, while Miniline seeks to re-establish itself in the competitive market. The Israeli air conditioning sector faces intense price competition and shrinking profit margins.
The story in 6 lines · by baba
- Miniline is negotiating with Chinese manufacturer GREE for Israeli air conditioner distribution rights.
- Tadiran, a major Israeli brand, relies heavily on GREE for its air conditioner production.
- GREE's current agreement with Tadiran prohibits it from selling its own brand in Israel until July 2027.
- The Israeli air conditioning market is highly competitive with significant price pressures.
- Miniline aims to strengthen its market position with the GREE brand after losing Samsung.
- Tadiran is diversifying its suppliers and seeking cheaper sourcing options.
Miniline, an importer of electrical products, is reportedly in negotiations with Chinese air conditioner manufacturer GREE to secure distribution rights for the brand in Israel. GREE is considered a high-quality and premium brand in the Israeli air conditioning market. This potential deal could significantly disrupt the local appliance sector, as Tadiran, a leading air conditioning company in Israel, heavily relies on GREE for manufacturing its products. GREE is currently Tadiran's primary supplier, and their existing agreement, set to expire in July 2027, prohibits GREE from selling its own branded air conditioners in Israel.
Tadiran executives argue that GREE has no business incentive to cease supplying them, given their 25-year purchasing relationship. They assert that Tadiran's purchase volumes far exceed what GREE could expect to achieve as an independent brand in Israel. Sources close to Tadiran suggest that even if Miniline begins marketing GREE directly, Tadiran will remain GREE's most significant customer in Israel for years to come, and the company intends to continue relying on the Chinese manufacturer.
This move by GREE aligns with a broader trend of Chinese competitors like Haier and TCL entering the Israeli market under their own brands, having previously manufactured for private labels. The Israeli air conditioning market is characterized by intense competition and shrinking profit margins, exacerbated by the entry of supermarket chains selling appliances. Tadiran itself sources from GREE, Haier, and TCL, and reported costs of goods sold of NIS 1.52 billion in 2025, with GREE purchases accounting for approximately NIS 150 million, or around 10-12% of its cost of goods sold in recent years.
Tadiran has acknowledged a short-term dependency on GREE but stated its intention to find alternative suppliers in the long term. The company's purchasing data indicates a strategy of risk diversification and seeking cheaper sourcing to combat market competition. An industry insider noted that while GREE products are high-quality, they are also relatively expensive, prompting Tadiran to seek other suppliers to compete on price, particularly for smaller units that dominate 70% of the market.
Previously, GREE began supplying Miniline with private-label air conditioners under the "Climatiq by Gree" brand for professional use, marking an initial step into the Israeli market under its own banner. However, Miniline has so far only sold these to businesses where brand name is less critical, avoiding the home market where brand recognition is paramount. Miniline's owner, Avi Asher, is reportedly keen to re-enter the air conditioning sector after losing the Samsung brand, aiming to strengthen its market position with a strong international brand like GREE. Despite this, the highly competitive and low-margin nature of the air conditioning market, with prices for some units as low as NIS 540 to retailers, presents a significant challenge.