Turkish Firm to Take Over Major Israeli Hygiene Brands Amid Embargo
Amid trade tensions, Turkish firm Dilek Gida is acquiring Kotex and Lily brands in Israel as part of a global Kimberly-Clark and Kenvue merger, forcing a business workaround.
In a striking business irony amid unprecedented geopolitical tensions, Turkish President Recep Tayyip Erdogan continues to enforce a strict trade embargo against Israel and Prime Minister Benjamin Netanyahu, disrupting local importers and supply chains. Meanwhile, a major Turkish company is set to take ownership of prominent consumer brands on Israeli shelves.
Turkish firm Dilek Gida is acquiring the operations of feminine hygiene brands Kotex and Lily across 11 countries, including Turkey, nine European nations, and Israel. The transaction was structured to pave the way for a massive global merger between consumer goods giants Kimberly-Clark and Kenvue.
Israel's Competition Authority greenlit the merger this week on the condition of divesting leading hygiene brands to prevent excessive market concentration. According to local media reports, the buyer taking over the brands in Israel is the Turkish firm itself.
The move raises significant questions regarding practical implementation. Due to Ankara's economic blockade, Turkish companies are officially barred from direct trade with Israel. However, Dilek Gida's regulatory obligations under the deal require it to ensure continued supply and marketing of products to local consumers.
Consequently, industry experts anticipate the company will adopt a bypass model, such as granting an exclusive distribution franchise to a local Israeli firm to manage logistics and retail sales. The Israeli feminine hygiene market generates hundreds of millions of shekels annually, reaching roughly 421 million shekels last year, and is currently dominated by Procter & Gamble with a 57.8 percent market share.
Kimberly-Clark previously held about 28 percent of sales through Kotex and Lily, which are now being transferred to Turkish hands. Concurrently, Kimberly-Clark will absorb Kenvue brands o.b. and Carefree, which hold a modest 9 percent market share. The merger is also shaking up veteran Israeli distributors, with companies like Stabitz expected to lose lucrative franchises including Johnson's Baby, Neutrogena, Listerine, Ben-Gay, Biafine, and Nicorette.
