Globbrands Loses Cigarette License, Shares Plunge, Fisherman Creditors Face Major Losses

Globbrands, an Israeli importer and distributor of tobacco and snack products, experienced a turbulent week as its stock value halved following the loss of its distribution license for leading cigarette brands from Japan Tobacco International (JTI). The license, a major source of the company's profits, will transfer to competitor Diplomat starting early next year. Globbrands estimated this loss would reduce its annual net profit by 35 million shekels, about two-thirds of last year's profit.

Since 2001, Globbrands has distributed JTI products in Israel, including Winston, Camel, and American Spirit, which accounted for roughly 45% of its sales. The company’s shares dropped over 50% last week, completing an 80% decline over the past year to a market value of 133 million shekels. Prior to losing the license, Globbrands announced plans to significantly reduce its candy and snack operations by the fourth quarter of this year, ceasing sales of brands from Unilever, Mars, and Blue, to focus on its own brands and medical equipment distribution.

Globbrands is controlled by Chairman Yaron Gazit, Fisherman Networks, and Gadi Netzer. Fisherman Networks, owned 50% by the late businessman Eliezer Fisherman’s children and 50% by his creditor banks, holds about 25% of Globbrands shares. The recent stock collapse has severely impacted Fisherman Networks’ value, now around 32 million shekels. Attempts to sell Fisherman Networks have repeatedly failed due to valuation disputes between the family and creditor banks.

In recent weeks, a buyer group led by Fisherman heir Eyal Fisherman and Ofer Barak, owner of the Stock retail chain, offered to buy the banks’ shares in Fisherman Networks for 110 million shekels, valuing the company at 220 million shekels. However, the recent drop in Globbrands’ share price casts doubt on this deal, as the buyers may seek a lower valuation.

Globbrands was founded in 2000 by Gazit and Netzer, initially focusing on tobacco product distribution. In 2013, it expanded into snacks and confectionery, representing major international brands. The company went public in 2018 with a valuation of 675 million shekels but faced criticism after a JTI agreement update reduced profitability. Gazit remains the largest shareholder with about 40.5% ownership.

Globbrands finished 2025 with revenues of approximately 3.7 billion shekels and a net profit of 59 million shekels, down 20% from 2024. The loss of the JTI license marks a significant challenge for the company and its stakeholders.