April 22, 2013

How Tnuva Plans to Mimic SabraÕs Success in the US With its Cottage Cheese

TEL AVIV — Tnuva, Israel’s largest dairy and one of its mega-food producing companies, appears on the verge of a renewed effort to tackle the US market and perhaps emulating the extraordinary success of Sabra, jointly owned by Strauss and Pepsico. Sabra’s success in taking the company mainstream and beyond $300 million in sales has become the model for many companies hoping to go mainstream. 

No, Tnuva is not planning to take on Strauss with such products as hummus. Instead, the company is banking on its cottage cheese and at least capturing a lion’s share of the kosher market with some $300 million in dairy sales. For Tnuva, cottage cheese is its flagship product and they believe of superior quality over any cottage cheese on the American market and with a longer shelf life. But to successfully take its cottage cheese to the next level in the US, the perishable cottage cheese should ideally be produced in the US. 

But Tnuva is gun-shy having endured a bitter experience in Rumania where it was forced to close its production facility. So, instead Tnuva will be relying on local contractors who will produce the products for Tnuva before it eventually expands into a facility of its own. Despite more than a decade in the US, the company has only managed to reach $8 million in sales of its various products.  But now the Board of Directors is determined to change that and to make a move to become the leading dairy in the kosher market and hopefully beyond.