El Al's Wine Deal With Kenny Rosenberg's Winery Questioned
Translated & summarized from Ice by baba
El Al is serving wine from Tabernakel Winery, owned by its controlling shareholder Kenny Rosenberg, despite the deal not being prominently reported. The airline claims the transaction is too small relative to its massive turnover to require detailed public disclosure. Tabernakel Winery, however, considers the deal a significant commercial anchor. El Al maintains the selection process is professional and the deal was properly approved.
The story in 5 lines · by baba
- El Al is serving wine from Tabernakel Winery, owned by its controlling shareholder Kenny Rosenberg.
- The deal between El Al and Tabernakel Winery was approved in April 2024 but not widely reported.
- El Al considers the transaction negligible due to its large overall revenue, not requiring detailed disclosure.
- Tabernakel Winery, a small boutique operation, views the deal as a significant commercial opportunity.
- El Al states wine selection is based on professional and commercial considerations and the deal was approved.
El Al passengers may notice a small, lesser-known winery from Moshav Tzuriel in the Galilee, Tabernakel Winery, featured on the airline's beverage menu alongside major Israeli wine brands. The winery's owner is Kenny Rosenberg, the controlling shareholder of El Al itself. Tabernakel Winery is a very young and boutique operation, with its winemaker, Yossi Eizikovich, only starting in 2018 and its first vintage released in 2020.
According to a report in "TheMarker," El Al's audit committee and board approved a deal in April 2024 to supply wines from Tabernakel until March 2025. However, no further reports on the agreement's renewal have been published, despite the wine continuing to be served to passengers.
The reason for the deal's absence from public company disclosures lies in the vast size difference between the entities. A related-party transaction for a public company requires disclosure only if it's considered material, typically around 5% of annual turnover. El Al has an annual turnover of approximately NIS 3.5 billion, and with revenues increasing significantly due to the war, even a deal worth hundreds of thousands of shekels is considered negligible and doesn't require further disclosure out of "excessive caution."
Conversely, for a small boutique winery like Tabernakel, supplying the national airline represents a significant commercial anchor that could greatly impact its revenue. El Al stated that wine selections are based solely on professional and commercial considerations, including quality and suitability. The airline emphasized that the agreement with Tabernakel Winery was previously reviewed and approved by the authorized bodies in accordance with the law and corporate governance rules.
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