Shufersal’s Move to Import Meat Independently Hits Baladi’s Growth Engine Ahead of IPO

Shufersal, Israel’s leading food retail chain, has decided to start importing Angus beef directly from South America, a move that significantly impacts Baladi, a major meat importer and supplier to Shufersal. This decision caused Baladi’s stock to plunge 9.5% in a single day, with trading volume surging to 57 million shekels compared to its 90-day average of 2.2 million shekels. The Amir brothers, Yossi and Shlomi, who control 24.9% of Shufersal, are executing a strategy to strengthen the chain’s position as a central product supplier by reducing reliance on external vendors like Baladi.

Baladi, controlled by Erez Dehabni with a 78.12% stake, had seen Shufersal grow from a minor customer to accounting for about 12% of its sales in 2025, approximately 181.2 million shekels. This growth was a key factor in Baladi’s January 2025 IPO, which raised 200 million shekels at a pre-money valuation of 750 million shekels. However, Shufersal’s shift to self-importing meat threatens this growth engine, raising concerns about Baladi’s future revenue and market value, which has already dropped below its IPO proceeds.

The change in supplier dynamics follows the Amir brothers’ acquisition of control over Shufersal in February 2024, which disrupted the longstanding relationship with Neto Melinda, the previous main meat supplier. Neto’s sales to Shufersal have declined steadily from 12.7% of its sales in 2023 to an estimated 5.2% in 2025, while Baladi’s share grew. Neto responded by diversifying its customer base, increasing sales to other retailers and private and institutional markets, resulting in a 10.5% net profit increase in 2025.

Baladi faces a tougher challenge due to its heavy dependence on Shufersal, with over 10% of its sales tied to the chain. Shufersal’s broader strategy under the Amir brothers aims to reduce external supplier dependence and increase control over product supply, though it remains unclear if this will lower consumer prices. Since the Amir brothers took over, Shufersal’s prices have risen significantly, making it one of the most expensive chains in Israel.

Other suppliers like Sano and Diplomat have also felt the impact of Shufersal’s strategy, losing market share to competitors. The true effect of Shufersal’s direct meat imports on Baladi will become clearer in the coming weeks as the new meat products reach stores. This will be a critical test for Baladi’s ability to replace its primary growth driver and sustain its position in the Israeli meat market.