Turkish Firm to Acquire Major Israeli Brands Amidst Trade Ban

Despite Turkish President ongoing economic boycott against Israel, a major Turkish company, Dilek Gida, is set to acquire prominent consumer brands in the Israeli market. The acquisition involves Kotex and Lily feminine hygiene brands across 11 countries, including Israel, as part of a global merger between Kenvue and Kimberly Clark.

The Israeli Competition Authority approved the merger this week, but stipulated the divestment of leading hygiene brands to prevent market over-concentration. Dilek Gida will acquire these brands in Israel, raising questions about how the transaction will proceed given Ankara's trade restrictions. Industry expectations are that the Turkish company will likely use a local Israeli distributor for logistics and sales.

The Israeli feminine hygiene market is valued at hundreds of millions of shekels annually. Procter & Gamble currently dominates with over 57% market share, while Kimberly Clark's Kotex and Lily brands held approximately 28%. The acquisition by Dilek Gida will shift these brands to Turkish ownership, while Kimberly Clark will absorb Kenvue's Aveeno and Carefree brands.

This development is also causing significant disruption for established Israeli distributors, such as Stobi, which are expected to lose lucrative franchises for brands like Johnson's Baby, Neutrogena, and Listerine. Meanwhile, Kimberly Clark Israel, under CEO Rinat Afrima, is restructuring to focus on health and wellness products and may introduce around 20 new European brands to the Israeli market.