Israeli Labor Union Launches Subsidized Private Label Food Line at Significant Discounts

The Histadrut labor union in Israel has introduced a new private label line of 37 food and household cleaning products, produced in the same factories as well-known brand-name items but sold at substantially lower prices. The average discount is around 30%, with some basic products priced up to 60% below the average retail price in supermarkets. This initiative, called the Social Supermarket, operates as an online store exclusively for Histadrut members, who number over 800,000, with a monthly purchase limit of 1,500 shekels.

The products come from established manufacturers such as Sadovsky, which produces both the Social Supermarket’s sponges and Sano brand sponges; Neve Tevelin, which supplies 12 types of spices; and Emek Hefer Apiary, which provides honey. For example, the Social Supermarket sells sponges for 5.90 and 9.90 shekels compared to 7.50 and 14.90 shekels for Sano products. Similarly, honey is priced at 10.90 shekels versus 16.90 shekels in regular stores. Tuna packs imported by the same supplier are offered at 7.90 shekels, a 60% discount compared to 19.90 shekels for branded tuna.

The Histadrut attributes the price reductions partly to subsidies, but acknowledges this does not fully explain the large price gaps. The Social Supermarket charges a delivery fee of 14.90 shekels for orders over 300 shekels and 30 shekels for smaller orders, with no option for self-pickup. Manufacturers note that products made in the same factory may differ in formulation and raw materials between private labels and branded goods, as retailers often specify their own product requirements.

The private label market in Israel currently accounts for about 7.3% of sales, much lower than the 38.7% average in Europe. The Histadrut plans to expand the product range soon. This model differs from other private label offerings by major chains like Shufersal and Rami Levy by focusing on subsidized pricing for union members through an online platform.