Rami Levy to Change Supplier: Eggs to Disappear from Chain Shelves
Following a commercial dispute, the M. Lesser company will stop supplying eggs to the Rami Levy Shivuk HaShikma chain. The retailer assures that there will be no shortage, as another partner will take over the supply.
A commercial dispute behind the scenes in the food industry will soon lead to a significant change on the egg shelves of one of Israel's largest retail chains. The company "M. Lesser," a leading supplier in the local egg market, has notified the "Rami Levy Shivuk HaShikma" chain that it will cease supplying eggs to all its branches starting at the end of August.
At the Rami Levy chain, management is working to calm the situation, clarifying that the termination of the engagement was reached by mutual understanding. According to the chain, the shelves will not be left empty, and supply will continue as usual through another supplier already working with them — the company "H.H. Matilot" from the north of the country. This was reported today (Thursday) by YNET.
At the heart of the commercial tension are the limited profit margins on this staple product. Egg prices in Israel are state-regulated (for example, 14.24 NIS for a carton of 12 size L eggs), but at Rami Levy, it is customary to sell packages at prices slightly lower than the maximum permitted. Although these are small discounts of a few agorot per carton, it is a benefit that erodes profit margins, financed by both the chain and the suppliers — especially after regulated prices were revised upward at the end of last year.
It remains to be seen how this move will affect the distribution map for Lesser, which operates in the market alongside other prominent players such as Glicksman, Ramot HaShavim, and Beitzei Aviv. No response was received from the companies involved.
