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The nasty and public fight between Supersol and Strauss-Elite ended yesterday with an announcement that their battle over commercial terms has ended.

The supermarket chain and the food conglomerate have signed an accord, moments before an all-out battle over special terms for Passover shoppers could have cut holiday sales for both.

The agreement announced yesterday morning sets out their commercial relations over the next two years, said Giora Bar-Dea for Strauss-Elite and Effie Rosenhaus for Supersol.

Sources in the industry believe that Strauss-Elite granted Supersol an additional discount of 1-1.5 percent on its products. Until now Supersol had received a regular discount of 1.5 percent, and after the agreement this discount will reach 2.75 percent, said food industry sources. The companies did not detail the terms in their statement, and refused to comment on the numbers cited.

Both firms had suffered financially because of the dispute - which took the form of Supersol removing Strauss' products from its shelves - and signed the agreement after a 24-hour marathon of talks. Estimates are that Strauss lost at least 5 percent of its monthly sales during the dispute.

The battle between the two companies was one the most interesting and unusual commercial disputes in recent years. The fight began three weeks ago when Supersol demanded that Strauss change its terms of supply, including a fixed discount of 6 percent. Strauss was willing to give an additional 1 percent, which was in the end close to the final result.

Their original agreement had been based on a bonus for sales growth, but in a recession, that did nothing for Supersol's bottom line. Strauss refused Supersol's demands, and Supersol rejected Strauss's suggestions.

The spat escalated nastily, as Strauss designed a campaign directing shoppers to its special 2+2 Passover sale - buy two, get two free - at all major retail chains except at Supersol, which had removed its products from its shelves.

Supersol retaliated by announcing a TV campaign promoting a special holiday sale on Tnuva goods (being Strauss' main rival on dairy products). Supersol will now be restocking all the Strauss products it had banned, including Yotvata dairy products and cheeses.