End of Spat Brings Osem Products Back to Hatzi Hinam Discount Supermarkets

Chain claims the food manufacturer refused to participate in sales promotions for the holidays, so it yanked Tivall, Off Tov and Tapugan from shelves

Food manufacturer Osem and the Hatzi Hinam supermarket chain have resolved their dispute, meaning the immediate return of Osem products to the chain's store shelves, one of the owners of Hatzi Hinam, Zaki Shalom, has told TheMarker.

"We came to an understanding after the two sides understood the dispute had to be resolved for the good of the consumer," he said.

osem - Haaretz - Aug 24 2010

The disagreement surfaced two weeks ago. The Hatzi Hinam chain stopped selling any frozen or refrigerated Osem products after, according to Shalom, Osem refused to take part in sales promotions Hatzi Hinam was planning for the upcoming holidays.

Osem's refrigerated and frozen brands include Tivall, Tzabar salads, Off Tov and Tapugan.

Osem, which is controlled by the Nestle group, said the move was a breach of its contract with the supermarket chain and announced that is would therefore reserve the right to change the terms under which it did business with Hatzi Hinam.

Last Thursday, the spat intensified when the supermarket removed all Osem products from its shelves, including non-refrigerated items such as ketchup, soup mixes, pasta, coffee and the Bamba and Bisli snack foods. The same day, Osem published newspaper advertisements informing consumers that, to its regret, severe shortages of its frozen and refrigerated products were expected at Hatzi Hinam stores.

At the time, Osem did not know that its other products were also being pulled from the supermarket chain's shelves.

The food manufacturer also began a sales promotion of its frozen and refrigerated brands at Mega Bool and Super-Sol Sheli branches near Hatzi Hinam locations, offering discounts of 15% to 20% off regular prices. Non-chain supermarkets were furious at the discounts Osem was offering, but Osem then offered them the same price breaks.