New health food chain in works

Blue Square will establish a chain selling organic and natural foods.

Sources inform ''Globes'' that Alon Israel Oil Company Ltd. subsidiary Blue Square Israel Ltd. (NYSE: BSI; TASE: BSI) is planning to launch a chain of health food stores on the basis of know-how and infrastructure of Eden Teva Market Ltd. Blue Square acquired 51% of Eden Teva for NIS 22.5 million a month ago.

Blue Square plans to open a nationwide chain of 30-40 stores within three years at an investment of several tens of millions of shekels. The acquisition of Eden Teva has given Blue Square know-how and a foothold in the health food market.

The Israeli health market comprises of a few independent chains and private specialty shops. The larger chains are Nitzat Haduvdevan, Organic Market, Teva Castel, and Anise.

There is a growing global trend of branded health food and organic food retail chains. Both Wal-Mart Stores Inc. (NYSE: WMT) and Tesco plc (LSE:TCO) have established health food departments in their stores. In the US and Canada, Whole Food Market Inc. (Nasdaq:WFMI) has a prominent chain with 199 stores and recently opened its first store in the UK.

Published by Globes [online], Israel business news - www.globes.co.il - on August 30, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
Twitter Facebook Linkedin RSS Newsletters