Israel Antitrust Authority head David Gilo is mulling declaring Tnuva Food Industries Ltd. and Strauss Group Ltd. (TASE:STRS) as monopolies in more food categories. Any such declaration would be subject to a hearing.
Not content with his declaration as the Tamar and Leviathan natural gas partnerships as a monopoly, the antitrust chief has now turned his attention to the food sector. He is considering declaring Tnuva a monopoly in 11 more categories: butter, heavy cream, light cream, cream cheese, hard cheese, cottage cheese, milk, UHT (long-life) milk, plain yogurt, and sour cream, and cream cheese products.
With regards to Strauss, Gilo is considering declaring a monopoly in four categories: cream texture cheese, children's puddings, flavored milks, and yoghourt drinks.
Strauss has been a monopoly in milk products and some of Elite's candy products since 1998, while Tnuva has been a monopoly in milk and dairy products since 1988.
The Israel Antitrust Authority announced today, "After a comprehensive economic investigation conducted by the Antitrust Authority, it is apparent that the milk and dairy products market is built in effect as different markets. For example, the investigation found that yellow cheese is a separate market from cream cheese, and both are separate from cottage cheese because consumers do not see these products as close enough alternatives to each other. Accordingly, there is room to make declaration more focused and declare Tnuva as a monopoly in a range of target product markets."
Strauss said that "Our office has received a notification from the regulator. We will study it and continue to cooperate fully with the Antitrust Authority as we always conduct ourselves towards all state authorities."
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2014
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