One step before declaring the baby formula industry an oligopoly, Antitrust Commissioner David Gilo has isummoned the four leading companies to a hearing.
Osem-Nestle with its Materna brand; Promedico, maker of Similac; Medici Medical, with its Optimal; and Teva Pharmaceuticals, with Nutrilon share a NIS 500 million market, but Materna and Similac control 97% of it.
Israeli parents paid 18% more than their peers in the United States and 64% more than in Britain for equivalent products, a study conducted for the nonprofit Public Trust organization found. The Israeli companies were estimated to earn a 40% profit margin.
Want to enjoy 'Zen' reading - with no ads and just the article? Subscribe todaySubscribe now