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Report Date : |
25.02.2013 |
IDENTIFICATION DETAILS
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Name : |
GAT GIVAT HAIM COOPERATIVE SOCIETY FOR PRESERVATION OF
AGRICULTURAL PROD |
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Formerly Known As : |
GAT FOOD CANNERIES LTD., |
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Registered Office : |
M.P Hefer Givat Haim Meuchad 3893000 |
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Country : |
Israel |
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Year of Incorporation : |
1942 |
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Legal Form : |
Agricultural Cooperative Society (ACS) |
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Line of Business : |
Processors, manufacturers, marketers and exporters of raw materials for the juice industry, natural juices, citrus concentrates, citrus bases, frozen juice concentrates (brand name "Prigat"), other soft drinks, canned peanuts and other nuts, etc. Also manufacturers and marketers of raw materials to the citrus field. |
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No. of Employees : |
380 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically
advanced market economy. It depends on imports of crude oil, grains, raw
materials, and military equipment. Cut diamonds, high-technology equipment, and
agricultural products (fruits and vegetables) are the leading exports. Israel
usually posts sizable trade deficits, which are covered by tourism and other
service exports, as well as significant foreign investment inflows. The global
financial crisis of 2008-09 spurred a brief recession in Israel, but the
country entered the crisis with solid fundamentals - following years of prudent
fiscal policy and a resilient banking sector. The economy has recovered better
than most advanced, comparably sized economies. In 2010, Israel formally
acceded to the OECD. Natural gasfields discovered off Israel's coast during the
past two years have brightened Israel's energy security outlook. The Leviathan
field was one of the world's largest offshore natural gas finds this past
decade. In mid-2011, public protests arose around income inequality and rising
housing and commodity prices. The government formed committees to address some
of the grievances but has maintained that it will not engage in deficit
spending to satisfy populist demands.
Source
: CIA
GAT GIVAT HAIM COOPERATIVE
SOCIETY FOR
PRESERVATION OF
AGRICULTURAL PROD
(Also known as:
GAT FOOD CANNERIES LTD., or "PRIGAT")
Telephone 972
4 636 88 11
Fax 972 4 636 88 92
M.P Hefer
GIVAT HAIM MEUCHAD 3893000-ISRAEL
Originally established in 1942 as an industrial department of Givat Haim
Ihud and Givat Haim Meuchad, both cooperative societies, operating communal
agricultural settlements (kibbutzim).
Converted into an Agricultural Cooperative Society (ACS) and registered as
such as per file No. 57-000096-8 on the 17.07.1958.
1.
ISRAEL BEER BREWERIES LTD., 51.33%, owned by THE
CENTRAL BOTTLING CO. (CBC) (85%, owned
by Moshe (Mosi) Wertheim & Family), Ron Kobrovsky (6%), Ram Shalev (6%)
and Benjamin
Rottenberg (3%),
2.
Kibbutz Givat Haim Meuchad, 24.33%,
3.
Kibbutz Givat Haim Ihud, 24.33%, both latter are
agricultural co-operative societies, operating communal agricultural
settlements.
In 2000 ISRAEL
BEER BREWERIES LTD. acquired 16% of subject’s shares, according to a company
value of US$ 40 million.
In August 2002,
ISRAEL BEER BREWERIES LTD. decided to take on its option to increase shares in
subject from 16% to 33.3%.
In November 2008, the COCA COLA ISRAEL Group
(via ISRAEL BEER BREWERIES) acquired 18% from shareholders 2 & 3 (see more
CHARACTER), reaching 51.33%, for the sum of NIS 80 million.
1. Itzik Bader, Chairman,
2. Efraim Renart, General Manager,
3. Shlomo Graziani, heads the Group's overseas
operations.
Processors, manufacturers,
marketers and exporters of raw materials for the juice industry, natural
juices, citrus concentrates, citrus bases, frozen juice concentrates (brand
name "Prigat"), other soft drinks, canned peanuts and other nuts,
etc.
Also manufacturers
and marketers of raw materials to the citrus field.
Manufacturing of
natural juices is also carried out by sister company INTERNATIONAL BEER
BREWERIES LTD.
Exports (including
citrus concentrates and juices), some 80% of total sales, to 40 nations
worldwide, including France, Germany, UK, Eastern Europe, the Far East and the
USA.
Citrus based
drinks are distributed by CENTRAL BOTTLING CO. LTD.
Other cold
products are distributed by TNUVA, a leading food distributor in Israel.
Among subject’s
main customers are all local supermarket chains, including the two leading ones
SHUFERSAL and MEGA BOOL, as well as food chains (MCDONALD'S, BURGER RANCH,
etc.), hotels and restaurants.
Among local
suppliers: PACHMAS, ARN PACKAGING NACSHON, GADOT CHEMICALS, FRUTAROM, GOLD BAR,
I.M.A.- ITZUR MUTZAREI ARIZA, TADBIK-PACK, BEST CARTON, CHEMICHLOR, AMRAZ,
MEDIJUICE, etc.
Advertising
agency: JWT.
Operating from
owned premises, offices and plant on an area of 63,000 sq. meters, 42,000 sq. meters
of which are built, located in Kibbutz Givat Haim Menuchad (near the city of
Hadera).
Also has
manufacturing activities in ISRAEL BEER BREWERIES’ plant in 5 Bar-Lev Street,
Ashkelon, and has several citrus manufacturing partnerships in Romania, Bulgaria,
South Africa, Spain and the Netherlands.
Having 380
employees (had 370 employees in mid 2012, same as in 2011, had 340 employees in
end of 2009).
Having over 4,500 employees serving the whole CBC Group.
Financial details
not forthcoming, however known to be financially solid, drawing on the strength
of the COCA COLA ISRAEL Group.
According to media
reports in the purchase of 18% of subject by COCA COLA ISRAEL, subject was
valued at NIS 350 million.
2010 sales claimed to be NIS 600,000,000, of
which 70% were for export.
2011 sales claimed to be NIS 650,000,000, of
which 75% were for export.
2012 sales claimed to be NIS 7000,000,000,
of which 80% were for export.
CBC Group sales
known to be hundred US$ millions, estimated at over NIS 2,000 million. These are only
estimations, as the Group's policy is not to release any financial data
or comment to such estimations. Annual operating profit estimated at NIS
400-500 million.
Bank Leumi Le'Israel
Ltd., Netanya Business Branch (No. 717), Netanya.
Bank Hapoalim
Ltd., Hadera Branch (No. 620), Hadera.
Mercantile Discount Bank Ltd., Hadera Branch
(No. 677), Hadera.
Israel Discount
Bank Ltd., Main Tel Aviv Branch (No. 010), Tel Aviv.
ISRAEL BEER
BREWERIES LTD., (also known as CARLSBERG ISRAEL LTD.),
producers and marketers of beer under the trade mark "Carlsberg" and
"Tuborg", as per license granted by plant in Denmark, also control:
I B B L SPIRIT LTD., 100%, sole agents, importers and marketers of
leading international alcoholic beverages and spirits (concessionaires of
DIAGEO and brands "Johnny Walker", "Smirnoff",
"Gordon's", “Bushmills”, etc.).
TABOR WINERY
(2005) LTD., fully owned by I B B L, a winery, operating a vineyard, producers
of wine under the label of "Tabor Wine".
Also in the
"PRIGAT" Group (though activities are marginal):
PRIGAT
INTERNATIONAL LTD., in charge of the provision of manufacturing concessions to foreign
manufacturers, for nectars and soft drinks under the brand name
"Prigat".
PRIGAT MANAGEMENT
2001 LTD.,
GAT FOODS & SNACKS, LP, 50%, a limited
partnership (50% by LEIMAN SCHLUSSEL LTD.), manufacturers and marketers of
mixed nuts under the brand “Prigat Pitzuhim”.
As well as: FROZO
(Panama, a trading company), AMGAT (50%, SPAIN, citrus processing), PRIGAT
HOLLAND (100%), PROGIO SWITZERLAND, 50%),
SIGAT (ROMANIA),
25%, manufacturers and marketers of juices.
THE CENTRAL
BOTTLING CO. LTD. (CBC in short, also
known as "Coca Cola Israel"), local concessionaires and producer of
Coca Cola, Sprite, Fanta, etc. It is owned by the Wertheim family headed by Moshe (Mosi) Wertheim, who gained
full control in CBC after acquiring the Late
Abe Feinberg part in subject in early 2000s (for US$ 250 million, reportedly).Consolidated
annual sales estimated above US$500 million.
Other main subsidiaries:
THE CENTRAL BEVERAGE DISTRIBUTION COMPANY LTD. the Group's
distribution arm.
NEVIOT- NATURE OF GALILEE LTD., some 89%, producers,
manufacturers and marketers of mineral water.
UNITED ROMANIAN BREWERIES, some 65%, concessionaires of
"Carlsberg" Beer in Romania (manufacturing and marketing).
MASHKAR LTD., 100%, operators of automatic soft drinks vending machines
MILCO INDUSTRIES LTD. (known as TARA DAIRIES), 100%, a dairy, producers
and distributors of dairy products. Local concessionaires of
"Muller".
AMRAZ LTD., 20%, manufacturers, marketers and exporters of plastic bottles
and other packaging products for soft drinks and other industries.
INFO PROD RESEARCH (MIDDLE EAST) LTD., 45%, market research.
And many others controlled
by the Wertheim Family in the real estate and financial markets.
In May
In December 2011,
another motion was submitted to the Tel Aviv District Court for the approval as
a class action lawsuit against subject. The plaintiffs claim that subject sold
its some of its diet juices contained sugar.
It should be noted
that the procedure for such claims to be approved are usually long and in most
cases eventually turned down. We found no further information regarding these
matters.
Nothing
unfavorable learned apart from the above.
Subject is a long
established business.
It is a local
leading company in the natural juice market and among the leading food
companies in Israel. From "Storenext survey, 'Prigat' brand held 5.2% of
total soft drinks market in 2011 (down 3.7% from 2010) with local sales of NIS
228 million, and leads the local fruit-based juice market with some 39% share.
Main rival is
JAFORA TABORI, with some 33% market share (though with 2 brands).
The local beverage market in 2011 fell 1.5% in quantity and grew by mere
1.8% in money terms, reaching NIS 4.39 billion (grew by 8.5% in 2010 in
quantity terms from 2009 and by 10.9% in money terms).
Subject is ISO
9001 certified.
Parent company,
COCA COLA ISRAEL (CBC Group), is the largest
soft drink manufacturer and distributor and the 4th largest supplier
in the local food & beverages sector largest food concerns in Israel, with
share of 7.2% of local food & beverage market valued at NIS 32.8 billion in
2012 (7.3% in 2011, similar to 2010). In the beverage sector (solo), subject
had 39.5% share in 2011 (39.9% in 2010, 39.1% in 2009).
In November 2008,
COCA COLA acquired further 18% in subject from Kibbutz Givat Haim Meuchad and
Kibbutz Givat Haim Ihud, reaching control. The transaction, said to be based on
subject's value of NIS 350 million (where COCA COLA ISRAEL is paying NIS 80
million for the 18%).
Also according to
the deal, COCA COLA ISRAEL has a "Call" option to reach full
ownership in subject in 8 years from the deal.
Mosi Wertheim and family, who control Coca Cola Israel
Group, also holds 22.1% in Israel's 4th largest bank MIZRAHI TEFAHOT BANK LTD., 24.8% in public real estate company ALONY-HETZ
PROPERTIES & INVESTMENTS LTD., 7.7% in public company KAMOR
LTD. (automobile importers and agents) and 51% in KESHET BROADCASTING LTD., one
of two franchisees of the popular T.V. Channel 2.
According to a
report from January 2012, Moshe
(Mosi) Wertheim is in the process of transferring his shares in CBC to his children,
David Wertheim (63%) and Ms.
Drorit Wertheim (37%). Mosi Wertheim will still
control CBC according to a power of attorney from his children.
Kibbutz Givat Haim
Meuchad, in the Haifa Bay region, was established in 1932, being one of the
largest and veteran "Kibbutz" in Israel ("Kibbutz" is a typical local cooperative agricultural settlement/
village),
currently with some 370 members.
In 1952 the
Kibbutz split and Kibbutz Givat Haim Ihud was established, currently with some
400 members. Both Kibbutz's, besides subject and few other business ventures,
are engaged in farming activities, including orchards and field crops, cowsheds
and more.
In June 2001,
subject together with local food importer LEIMAN-SCHLUSSEL established a new
company – GAT FOODS, to produce, market and distribute mixed nuts.
In November 2001,
it was reported that "Prigat", together with AMC of Spain, erected a
citrus plant in Spain, in an investment of US$ 10 million.
In August 2003, it
was reported that subject received the franchise to market the OCEAN SPRAY
beverages in Israel.
In mid 2008 CARLSBERG
A/S, of Denmark, sold its 20% share in subject's parent ISRAEL BEER BREWERIES
to the main shareholder, CBC, for US$ 36 million.
In October 2008 it
was reported that subject is launching "Organic Juice" line,
investing NIS 3 million in advertising and branding.
In mid 2010, it
was reported that subject is launching a re-branding campaign with investment
of NIS 10 million.
In
November 2010 subject launched a series of flavored tea drinks, with reported
investment of NIS 10 million, and include promotion campaign.
In March 2012, following a successful tender offer, CBC completed the
acquisition of NEVIOT, reaching some 90% (the remaining shares are held by Ron Kobrovsky) for NIS 15.2 million, and shares were de-listed from trade on the Tel
Aviv Stock Exchange.
After several years of
constant growth, the consumer products market, which includes food, beverages
and household and personal care goods, ended 2012 with fixation and even
decrease in sales, according to Nilsen Market Research. The decrease intensified
over the last quarter of 2012, but was compensated by prices rise. In money
terms, the market grew by mere 0.7%, lest than the population growth rate (2%
per annum), reflecting the slow-down trend in the local economy which started
in 2011 2nd half. Sales in the bar-coded consumer market reached NIS
40.4 billion. Sales of food in 2012 grew by 1.1%, reaching NIS 29.8 billion,
while in the beverage market sales fell by 2% to NIS 5.1 billion. Volume of personal care goods rose by 3% to NIS 3 billion,
while sale of household increased by 1.5% to NIS
2.7 billion.
Sales for exports by the food & beverages industries remained stagnant
in 2012, with sales reaching US$ 952.3 million (0.3% decrease from 2011). In 2011
sales for export rose by 16.6% from 2010.
Local food industry employs over 61,000 workers.
According to Central Bureau of Statistics (CBS) data,
investments in machinery & equipment from import for the food industry in
2011 summed up to NIS 929.5 million, 47.7% rise from 2010 (after 15.4% increase
in 2010), while investments in machinery & equipment from import for the
beverage & tobacco industries rose by 2% to NIS 379.7 million (rose 9.7% in
2010).
From CBS preliminary National Accounts for
2012, it turns that in 2012 expenditure on private consumption grew by 2.8%
from 2011, after rising by 3.8% in 2011. Per-capita expenditure increased by
0.9% (1.9% rise in 2011).
Per capita expenditure for private consumption on non-durable goods
rose in 2012 by 1.4% per-capita (1.3% rise in 2011). This rise reflects
increases by 1.3% in expenditure on food,
beverage and tobacco and 4.5% expenditure
on clothing, footwear and personal effects.
Good for trade
engagements.
Note: Since the beginning of 2012 Israel Post
started using a new area code method of 7 digits (the old method of 5 digits
will still be valid till end of 2012).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.43 |
|
|
1 |
Rs.83.20 |
|
Euro |
1 |
Rs.71.91 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.