Shufersal Ends Partnership with Baladi, Begins Direct Meat Imports and Private Brand Production
Shufersal, Israel's leading food retailer, has decided to deepen its control over the meat market by severing ties with meat producer Baladi. This week, Shufersal announced it will start importing chilled meat directly to its butcher shops, ending years of purchasing from specialized importers and, more recently, from Baladi. This move extends beyond the butcher shops to Shufersal's private label meat products, where Baladi lost an internal tender to produce the retailer's private brand. The winners of the tender are Neto Melinda, Tzion Shamaka, and Zohar Basar, who will produce meat under the brands Black Butcher, Carlos Butchers, and Asador, respectively.
Following the announcement, Baladi's stock dropped 9.5%. The company responded by emphasizing its diversified customer base across retail and institutional markets and highlighted growth driven by its innovative distribution center. Baladi also expressed confidence that high demand and limited kosher slaughter capacity would allow it to maintain supply volumes despite losing Shufersal as a client. However, the stock closed down 3.3% after trading.
Shufersal's strategic shift is part of a plan by controlling shareholders Yossi and Shlomi Amir, who hold 24.9% of the company, to strengthen Shufersal as a central supplier. The retailer will import chilled meat from South America, with products expected on shelves within weeks. Baladi's financial reports for 2025 showed that Shufersal accounted for 12% of its sales, up from 9% in 2024 and 2% in 2023.
This decision follows the Amirs' acquisition of control in February 2024 and the recruitment of Lior Leizer, formerly Baladi's VP of sales and marketing, as CEO of Shufersal Businesses. The tender win by Neto Melinda signals warming relations with Shufersal after the Amirs sharply reduced Neto's role, which had been a main supplier for over a decade. Neto's sales share to Shufersal fell from 12.7% in 2023 to 5.2% last year.
Baladi stated it will focus on producing under its own brand rather than private labels from 2025 onward, aiming to expand its own product lines and develop new series. The company welcomed free competition and reaffirmed its commitment to offering affordable prices to consumers while leading the Israeli meat market.
