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.
Sunday, September 02, 2007
Witness to Creation
Globes writes: New health food chain in works. Blue Square will establish a chain selling organic and natural foods. Alon Israel Oil Company Ltd. 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. Now, what a coincidence, I spent the morning working on Teva Market's permit, and it took me 2 hs to reach Natania because today is the first school day and the police practically stopped the vehicle movement in the city. The inspectors said they saw the Teva Market selling flowers, which is not permitted (the designs didnt take into account a flowershop which has different regulations.) And they were selling prepared food to take away, which again, was not in the original presentation. These Teva Market people moves ahead very fast, much faster than the regulators. It is fantastic how fast Guy Provisor, the owner and inventor of this shop, has made 5 million dollars. He had one natural food shop in Ramle or some other cheap location, and then bought the design of a new shop in Natanya new industrial area, near IKEA, from Dror Zonnenschein. In a few months he built the hangar and the food stands, very nicely decorated, and a few days after inauguration he is selling 51% to a private equity outfit called DELEK. I received small crumbs ... organic crumbs, but nothing.