Histadrut Launches Subsidized Private Label Food Line at Significantly Lower Prices

The Histadrut labor federation has introduced a new private label line featuring 37 food, cleaning, and household products manufactured in the same factories as well-known brands but sold at substantially lower prices. The average discount is around 30%, with some basic items priced up to 60% below the average retail price in Israeli supermarket chains. While part of the price reduction comes from subsidies, this does not fully explain the large price differences.

Products such as kitchen sponges from Sadovsky, honey from Emek Hefer apiary, and spices from Neve Tavlin are produced by the same manufacturers that supply branded products but carry the Histadrut’s private label with a different packaging. For example, Sadovsky sponges sell for 5.90 and 9.90 shekels compared to 7.50 and 14.90 shekels for the branded equivalents. Similarly, a four-pack of tuna imported by the same distributor is priced at 7.90 shekels versus 19.90 shekels for the branded product.

The Histadrut’s model operates as an online supermarket exclusively for its members, numbering over 800,000 workers, with a monthly purchase limit of 1,500 shekels. Delivery fees are 14.90 shekels for orders above 300 shekels and 30 shekels for smaller orders, with no option for self-pickup. The organization plans to expand the private label product range soon.

Manufacturers note that producing in the same factory does not guarantee identical products, as formulations and raw materials may differ between branded and private label goods. Private labels have long existed in Israel, with suppliers like Emek Hefer and Neve Tavlin producing for chains such as Shufersal and Rami Levy, where price gaps of 22% to 45% have been documented. However, private labels still represent only about 7.3% of sales in Israel, compared to 38.7% in Europe.

The Histadrut emphasizes that their products match or exceed the quality of branded items while offering significant savings to consumers, aiming to alleviate the cost of living pressures in Israel.