Globbrands Founder Returns as CEO Amid Loss of Winston and Camel Distribution Rights

Globbrands, an Israeli distribution company, is undergoing major restructuring after losing the distribution rights for Winston and Camel tobacco products owned by the international giant JTI. The company announced a comprehensive efficiency plan that includes the resignation of CEO Roy Amit, who will be replaced by the company’s founder and chairman, Yaron Gazit. Gazit will take on the CEO role without additional pay and will reduce his management fees by 75%, saving the company significant costs. Additionally, the salaries of the owners and board members will be cut by 20% from October until June 2027 or until their term ends.

The company also established a small executive committee to advise management on implementing the efficiency plan. This committee includes Yaron Gazit, Gadi Netzer, and Eyal Fishman, all controlling shareholders and board members. Despite the salary cuts, Fishman and Netzer will receive increased annual compensation for their roles on the committee, with Fishman’s annual cost rising from 98,000 to 254,000 shekels and Netzer’s from 100,000 to 217,000 shekels. Gazit will not receive additional pay for committee membership.

Globbrands’ controlling shareholders are Yaron Gazit with 40.5%, Fishman Networks with 25%, and Gadi Netzer with 4%. The loss of the JTI distribution agreement, which lasted 25 years, came after JTI chose to transfer the rights to the Israeli distributor Diplomat. Two months ago, Globbrands warned of a potential 35 million shekel profit loss in 2026 compared to 2025 due to this change. The company is seeking new distribution agreements in other sectors to offset the revenue loss.

Despite these challenges, Globbrands reported a 2% increase in revenue in Q2 2024, reaching approximately 962 million shekels, while net profit attributable to shareholders remained stable at 15.4 million shekels.