Posted by Menachem Lubinsky on January 24, 2011 under Kosher Industry | 
Brooklyn… by Menachem Lubinsky …It was nearly 25 years ago that the Kedem Wine Company realized that it was on the verge of major expansion. Its introduction of quality kosher wines beyond the traditional sweet wines used for sacramental purposes was beginning to pay off. The challenge was to develop a top notch sales force that could penetrate a growing demand for kosher food and wines. David Herzog of Kedem took a quick look around in the lobby of his Williamsburg, Brooklyn plant at the seasoned salesmen who applied for the sales position, but his eyes focused instead on a 23-year old yeshiva student, he recalled during a tearful eulogy at the funeral of Yossi Pressburger who died of a massive heart attack at the age of 48 during a sales trip to Detroit. Pressburger was remembered as a “model” husband and father of seven and as a community activist for whom “no task was too small or menial.” Recalling his penchant for detail that included tending to the needs of his shul and its members,” Rabbi Eliezer Ginsburg wailed: “Where are you Yossi?”
Nathan Herzog recalled how Yossi quickly became an important ingredient in the company’s growth. “He opened so may doors for us, not only in wines but in foods as well.” Herzog continued: “While he was our VP of Sales, there was not an area in the company that he did not play a major role in.” News of Pressburger’s untimely death shocked the entire industry. Yakov Yarmove of SuperValu who recalled taking many joint business trips with his friend Yossi, said: “My heart is torn and crying inside for this most untimely loss.” Sid Roth of Michigan Wine & Liquor, who was one of the last people to see Yossi, expressed “shock and disbelief” offering to do what he can “to help.” It was his integrity, strong character and perpetual smile that made Yossi such a popular figure in the kosher food industry. A friend said: “He had this unusual trait of making everyone feel comfortable. No wonder that he could sell almost everything.” This sentiment permeated throughout a packed funeral chapel where the tears for a salesman that many called a “prince” was filled with a grief seldom seen in the community. As the stunned crowd of over 500 people bid Yossi Pressburger a final farewell, the kosher food industry mourned the loss of “one of its best.”
Posted by Menachem Lubinsky on January 21, 2011 under Kosher Industry |
San Francisco…While recognizing that this was a trade show that is far from being a show that focuses on kosher, visitors to the NASFT’s (The National Association for the Specialty Food Trade) Winter Fancy Food Show (Jan 17-19) found that kosher was very prevalent. One trend that is certain to carry over into kosher is the growing number of gluten-free products that were on display. “Gluten-Free” was named one of the top five food trends by the NASFT and visitors say they saw many new kosher certified gluten-free products, including such brands as Earth Source Organics Chocolate, Goody Good Stuff Candy and Health Flavors from Australia. Gluten-Free was already a noticeable growth category at Kosherfest last October and given its prominence here is likely to expand even further at the 2011 edition of Kosherfest. But kosher was prevalent in almost every aisle, including the gourmet cheese (Chalav Yisrael) line by Anderson, many new rugelach and hamentashen products from Chewys Rugulach, Soy Voy sauces, and a relative new kosher Jelly Belly with its many new flavors.
Posted by Menachem Lubinsky on January 20, 2011 under Israel, Kosher Wine |
Tel Aviv…Israel’s wine industry continues to score big with wine reviewers and in international competition, but its sales do not reflect its new status, several Israeli wine experts told Kosher Today. The experts say that the quality of Israeli wines “is still very much a secret, although it is slowly gaining traction.” In the first 10 months of 2010, Israel exported $18 million worth of wines, according to an extensive report released by Israel’s Foreign Ministry. But given its new prominence, say the experts, the figures should have been at least double. The latest confirmation of the quality of the Israeli wines came from noted wine critic Mark Squires who tasted 76 wines from 17 wineries, including such well-known wineries as Yarden and Golan Heights Wineries. As reported in Robert Parker’s Wine Advocate, 12 of the wines scored 90 and above. The top scorers were Castel Grand Van, Domaine du Castel 2008 and Sycra Muscat, Clos de Gat 2006, with 93 points each. Carmel Limited Edition, Carmel Winery 2007 and Yatir Forest, Yatir Winery 2007 were each ranked a 91. Avidan Winery’s Fringe Full Wine, 2008, and Tagkaton Blend des Noirs, 2008, each scored 90 points, as did Petit Castel, Domaine du Castel 2008 and Yarden Heights Wine, Golan Heights Winery 2008. Experts believe that the Israeli wines could better compete with other European wines, for example, if “there was a budget for marketing.” Others thought that the answer would come from better sales and distribution. There was a sense amongst the experts that the Israeli wines would “pick up steam” in the coming years but that “it will be a slow process.”
Posted by Menachem Lubinsky on January 19, 2011 under Kosher Industry |
By Menachem Lubinsky
New York…The protest over the dismissal of 11 New York State kosher food inspectors in the waning days of the administration of Governor David Patterson quickly gave way to a huge question mark about the move by the incoming administration of Governor Andrew Cuomo to turn the State’s food safety inspectors into kosher food inspectors. Three major Orthodox organizations gave Governor Cuomo the benefit of the doubt: In a statement signed by Agudath Israel of America, the Orthodox Union and the Rabbinical Alliance of America the Orthodox groups wrote: “We welcome the recent announcement of the New York State Department of Agriculture and Markets of its intent to continue to provide protection to consumers of kosher food in New York. But we must at the same time voice concern about the effectiveness of some of the new measures announced by the Department.” In conversations with many leading figures in the kosher food community, there was doubt whether the training of the state’s 85 health food inspectors would protect kosher consumers. The State’s Kosher Food Law which replaced the 100-year old kosher food laws on the books until 2004 due to a successful court challenge, only called for kosher foods to be registered with the State’s Department of Agriculture and Markets and for kosher establishments to post information ob their kosher certification.
Despite what appears to be a significant increase in the number of inspectors empowered to look for kosher disclosure violations, many in the kashrus world were not so sure. They argue that the inspectors already have a major function and may not be attentive to the kosher nuances. It was also not clear how consumers could complain about violations, although the Department’s Director of Kosher Law Enforcement, Rabbi Luzer Weiss remains in place and will be responsible for the training of the inspectors. Kashrus officials say that opponents of any state enforcement are missing the point that kosher is a major contributor to the social and economic wellbeing of the state, which has the largest number of kosher consumers outside of Israel. It is estimated that nearly 40% of the nation’s $13 billion industry takes place in New York State. Many of the state’s elected officials say that they will be advocating stronger enforcement of the kosher food laws in the state. It appears that the issue will continue to linger, at least until the question of whether the state’s food safety inspectors can also be kosher food inspectors is resolved.
Posted by Menachem Lubinsky on January 18, 2011 under Kosher Industry |
New York…The kosher food industry has significantly upgraded its packaging, which many distributors say is a big part of an industry that chalked up an approximate 12% increase in sales in 2010. Led by such companies as Manischewitz, which recently completely revamped its packaging for its Tam Tams, the industry has gone to a more modern look, using update logos, modern fonts, and pastel and other bright colors to make a noticeable difference on the shelves. Distributors say that the change has involved all categories, from groceries to refrigerated and frozen. In addition to Manischewitz, they point to the many health related foods like the line by Shibolim. There are the many prepared meals produced by Alle Processing with exceptional packaging and even deli whose packaging is significantly upgraded from just a decade ago. The upshot of the new era in packaging is that the products are much more user friendly on the shelf, say the distributors and are the reason for their broader appeal that extends to all categories of consumers. This is particularly true in supermarkets and club stores where the products have to compete with general merchandise on shelves. The focus on packaging came at a time when the industry continued to show remarkable strength, even in the face of sluggish grocery sales due to the ongoing recession. Although distributors say that some companies experienced “flat” sales in 2010, kosher food purveyors as a whole realized double-digit growth in sales for the fifth straight year. While new product introductions were credited for the growth in the past few years, there was surprising emphasis on packaging this year. Said one distributor: “A big reason for the success of kosher in the last year or two is the presentation of the foods.” He added: “Whether at Kosherfest or in the aisles, kosher food products simply look much better.”
Posted by Menachem Lubinsky on January 17, 2011 under Kosher Industry |
New York… “It should come as no surprise that products that were originally positioned primarily for the kosher/Jewish consumer can find significant growth opportunities by ”mainstreaming” their product lines (i.e. having these products participate in the general U.S. food marketplace), is the conclusion of a major paper by Milt Weinstock, a senior marketing consulting and a former Vice President of Grey Worldwide, one of the world’s largest advertising agencies. In his paper, Weinstock points to such well-known successes as Lenders Bagels and, of course, Hebrew National with its legendary “We Answer to a Higher Authority”. More recently, Sabra Hummus, originally a Jewish focused brand/ product, “mainstreamed” their line and became the growth leader in the general salads / spread/ dip market, generating +$100M in sales. Weinstock suggests that many kosher products could possibly go the route of mainstream. “Mainstreaming requires a number of disciplines and resources that many current manufacturers and marketers of kosher/Jewish oriented products need to recognize,” the marketing expert says. He says that products must answer a consumer need that is not being satisfied by current “mainstream” options and that the product actually delivers in its brand promise. Getting into the right stores and having a strong shelf presence against “mainstream” competitors, which may sometimes require “slotting allowance” fees, is another major factor on taking a product mainstream.
Weinstock notes that kosher purveyors who want to pursue taking their product to all categories of consumers will have to recognize that going “mainstream” will require an investment in marketing activities, including packaging, promotions
(trade and consumer), PR, and possibly advertising to get the word out. Price sensitivity is another major factor in assuring that consumers are getting a good value, especially in a price sensitive economy. In concluding his presentation, Mr. Weinstock urges patience: “The successful brands that have made the “mainstream” transition, have done it “right” by careful study of the marketplace, even if it took a bit more time than just running out quickly to “succeed”.
Posted by Menachem Lubinsky on January 14, 2011 under Kosher Industry |
New York…Peggy S., a 31-year old nurse, is a frequent visitor to a large supermarket in the Chicago area because of “its large kosher selection, including challah, brisket, and gefilte fish.” But Peggy, the mother of 4, is married to a non-Jew who understands her desire to be connected to her past through the kosher foods. According to Yakov Yarmove of SuperValu, Peggy is not alone as a growing number of America’s intermarried families frequent the kosher section of supermarkets. A new study recently put the number of Americans identifying themselves as Jewish at 6.5 million, 1.3 million more than the 5.2 million number in the 2001-2002 National Jewish Population Survey by the United Jewish Communities. Researcher Leonard Saxe, one of the authors of the new study, noted that “while some see Jewishness as a religious identity, others see it as a cultural or ethnic designation and might, for example, not answer “Jewish” to a researcher inquiring about their religion. But still, officials like Yarmove and even some local rabbis say that even those that are totally disconnected from other aspects of practicing Judaism, feel “connected” through kosher foods. While there are no hard numbers to quantify the number of such Jews, many retailers feel that is significant, particularly “once you get further away from New York.” Kosher officials say they are not surprised by Saxe’s finding, judging from what they are experiencing in supermarkets throughout the country.
Another huge discrepancy appears to be the number of Israelis living in the US. In a story by Sue Fishkoff in the JTA, it is reported that some 140,323 people living in the US were born in Israel, up from 109,720 in 2000. Of the Israelis living here, 90,179 have U.S. citizenship and 50,144 do not. But Israeli expatriates and Israeli government sources say the true figure is actually much higher. The Israeli Consulate in New York estimates there are 600,000 Israelis living in the United States. The U.S. data on the Israeli population comes from the 2009 American Community Survey, an annual report produced by the U.S. Census Bureau that was released earlier this year and updated in recent weeks. While there is some debate about the discrepancy, kosher food sources actually subscribe to the higher figure, which they base on sales of Israeli foods in such markets as New York, Los Angeles, Miami, San Francisco, Boston and Philadelphia.
Posted by Menachem Lubinsky on January 13, 2011 under Kosher Companies |
Vineland NJ…Vineland Poultry, a leading producer of kosher poultry for more than 35 years, was acquired by Mehadrin Poultry for an undisclosed price, kosher food sources told Kosher Today. According to the sources, the Vineland plant will close while the Vineland brand continues to be produced at the Mehadrin Pennsylvania plant. Reached by Kosher Today on Thursday, Marvin Raab of Vineland denied the rumors. In an e-mail, he wrote: “This is totally not true. Mehadrin did not buy our plant and this is totally false.” But sources say that the transition is already underway. They say that Vineland, once said to be second only to Empire Kosher Poultry, may have fallen victim to the dramatic changes that have taken place in kosher poultry. In addition to Empire, the leader in the field for many years, and Alle Processing, Vineland faced increased competition from such relative newcomers as KJ Poultry and Mehadrin. KJ Poultry of Monroe NY is said to have captured a significant share of the market in a short time. The resurgence of the Agri poultry products under AgriStar also introduced more competition into the marketplace as did product from Canada, all of which had its effect on the low margins poultry producers were already working with. Located in Exter PA, the relatively new Mehadrin plant was damaged by a fire in February 2009, but is said to have fully recovered since.
Posted by Menachem Lubinsky on January 12, 2011 under Kashrus Organization |
New York…The suit by the Orthodox Union (OU) against Western Edge “for trademark infringement and deceptive trade practice” raised the issue of the need for kosher certification for repackaged foods. In Western Edge’s case, they imported tilapia fish from a Chinese company that represented itself as kosher and was not. The suit alleges that Western Edge produced a fraudulent OU letter when asked by a Brooklyn food company about the kosher status of its tilapia fillets. But kashrus officials say that Western Edge would have needed kosher certification even if the Chinese company was certified because it was processing and repackaging the tilapia. Interestingly enough, the requirement for kosher certification for repackaged foods is not one of the universal policies adopted by such umbrella kashrus groups as the Association of Kashrus Organizations (AKO). While there may not be an official policy, “the standard is that if it is opened up at the repackaging company then some level of rabbinic oversight is needed if they want to use a kosher logo there as well,” said Rabbi Sholem Fishbane, Executive Director of AKO. Most kashrus officials agreed that a brand could not rely on the kosher certification of the manufacturer if the product is repackaged. “The minute the box is opened at a repackaging plant, that’s when our certification ends,” said Rabbi Moshe Elefant, COO of the Orthodox Union. The officials say that they often have to “chase down” companies that don’t bother to apply for kosher certification because they are convinced that they are automatically covered by the manufacturer’s certification. They make the distinction between kosher manufacturers that do private labeling and manufacturers that ship products to be repackaged by a distributor, wholesaler or retailer. In the earlier case, kashrus officials who are on site or do periodic inspections are aware of the label on the package while in the latter case they are not which is why they require a new application for certification.
Posted by Menachem Lubinsky on January 7, 2011 under Kosher Catering |
New York…In a frantic effort to restock empty shelves during the recent blizzard in the Northeast, distributors of kosher foods overcame some major obstacles, including unplowed streets and little parking or standing space. Shelves in many areas of New Jersey were left empty by customers hording foods on Sunday in anticipation of the blizzard that virtually left the region, including New York City, paralyzed. Retailers say that deliveries on Monday were extremely spotty but that miraculously trucks were able to resume their normal deliveries as early as Tuesday. Some retailers said that they had a sufficient “reserve” (including frozen poultry) to replenish shelves on Monday. Dairy and poultry distributors, say the retailers, “came through big time.” Jewish social service agencies also beat the odds, according to William Rapfogel, Executive Vice President of the Metropolitan Coordinating Council on Jewish Poverty. He noted that many volunteers made sure that the elderly received food from the organization’s food pantries and soup kitchens (Masbia). Through volunteers that braved the inclement weather, Masbia served hot meals during the blizzard. A Meals-on-Wheels program by the Jewish Community Council of Greater Coney Island was one of the very few such programs which functioned despite the emergency snow conditions (meals were delivered on-foot by extraordinary staff who walked long distances to prepare and deliver the meals).
