It is a myth that Israelis do not like the taste of Cadbury's chocolate, says Rael Goodman, CEO of Carmit Candies Industries, which is marketing and distributing the multinational's confectionery products in Israel. Much-quoted, he admits, but nevertheless a myth.
Goodman, a former South African, reports that extensive taste tests were conducted before Cadbury's chocolate reached the shelves of Israeli supermarkets a few weeks ago. Now he hopes the new products, which include Flake, Twirl and Dairy Milk bars, will not only dent the 70 percent share of the chocolate and sugar confectionery market held by Elite, but will also expand the market by 10 percent within three years.
Chocolate consumption in Israel is very low compared to the world average, says Goodman. "The average Israeli eats up to two kilograms per year. Most Europeans eat an average of 10 kilograms, with this quantity reaching 15 kilograms in certain countries like Denmark," he says, adding that even in other countries with very hot summers - Greece and Italy, for example - locals eat an average of six kilograms of chocolate a year.
But this relatively low chocolate consumption is what makes the Israeli market so attractive to a multinational like Cadbury, says Goodman.
"In more developed markets, they can increase a percentage here or there, but it is very difficult to make a real change in the market balance," he says, adding that major growth only comes through acquisitions or entering undeveloped markets, where the brand can be built. (Although Cadbury's chocolate has been available in Israel for some years through a local importer, only a very limited number of products were sold and the brand was not marketed.)
For Israelis who grew up in Britain, South Africa, Australia, Canada or Ireland, of course, Cadbury's chocolate needs little introduction. Goodman reports that the Carmit offices in Rishon Letzion have received an ecstatic response to Cadbury's appearance on the local scene from some chocolate-lovers of Anglo-Saxon origin. He adds that his own contacts in the Ra'anana area have informed him it is "the talk of the day" there among South Africans.
He acknowledges that "for people brought up on the taste, there's an emotional connection that's difficult to explain," but is clear that the niche market of immigrants who grew up with Cadbury is not the company's target.
"We are aiming at the mass market," he says. "People who want to buy an international quality brand that you'll find anywhere in the world - at a reasonable price. We want the average Israeli."
Meanwhile, Cadbury will be trying to compete against the childhood favorites of native Israelis - a difficult but not insurmountable challenge, believes Goodman.
While he cites Nestle's attempt to establish itself as a leading brand in the chocolate market as a "failure," he rates the company's success in entering the coffee market as a model launch.
Since Cadbury's chocolate hit the shelves in Israel in the last week of December, Goodman reports that Flake has been the best-selling of its products. He says this was a surprise for him, as Elite produces a similar product, "which most Israelis were brought up on."
The Flake, which was created in 1920, is the "basic essence of the Cadbury's taste," he says, hoping that its initial popularity proves that "taste is not a barrier" to Israelis. "I thought it would take [Israelis] longer to get used to," he adds.
In fact, all of the Cadbury products brought to Israel have their equivalents in Elite or other local players. Goodman says that Carmit managed to persuade Cadbury to rename its "Time Out" product, "Knock-Out," because Elite carries a product called "Pesek Zman," ("time out"), even though Cadbury rarely changes its brand names. "We wanted to avoid one war if we could," says Goodman.
Because Carmit's own chocolate products are targeted at the kosher lemehadrin market, Goodman says that Cadbury "compliments, rather than competes" with Carmit's current range, which also includes lollipops, toffee, marshmallows, halva, wafers and freezer pops.
Negotiations between Carmit and Cadbury began over two years, when Goodman was in the post of vice-president of marketing. The chocolates took so long to reach the shelves, he says, because of the kashrut issue, which required Cadbury to make sections of factories in South Africa, Ireland and the UK kosher. He adds that the intifada or political factors were not a consideration for Cadbury, which plans to invest $4.5 million in its first year in Israel, including $2.5 million on promotion.
Consumers can expect to see selection box Milk Tray, Roses and Heroes later this year, he says.
Goodman, 36, was born in the South African city of Port Elizabeth - not far, he adds, from a large Cadbury's chocolate factory. Though his family immigrated to Israel when he was seven, Goodman says he has childhood memories of the Cadbury taste, which, he says, make his company's links to the chocolate giant "like a dream come true."
A fourth-generation candy manufacturer in his family, Goodman relates that his great-grandfather established a large candy factory in Port Elizabeth called Algoa Sweet - later known as Turnwright - which Goodman's father closed down when the family immigrated to Israel in 1974.
In Israel, Goodman's father, Lawrence, hooked up with fellow former South African Leonard Sackstein, who had established a sugar confectionery company, Taste of Israel, which later evolved into Carmit Candies Industries.
Goodman reveals he is still in touch with his South African roots, admitting that even with his level of access to sweets and chocolate in Israel, he still longs for the South African favorite, Peppermint Crisp, which is very hard to find locally.
Now there's an idea that would make him popular in Ra'anana.
Reactions to new chocs on the block
Kate Sheffer, British-born English teacher: "I'm very, very, very pleased it's here. It tastes just like I remember. I wasn't that big on chocolate before, and now I'm on a Twirl a day."
Keith Lawrence, British, deputy director of the British Council: "It's not as creamy as British-made Cadbury's, but I'd still buy it because it's better than Israeli chocolate; and I'm not being xenophobic."
Barbara Orvitz, South African-born, COO in a finance company: "Before, it was just a treat. Now, it's just too available, which could be dangerous. But I'm still waiting for [Cadbury's] Top Deck to arrive."
Pamela Becker, former New Yorker, works in marketing: "I don't get very excited about Cadbury's, but my [British-born] husband says it's because I'm American and I don't know any better."
