Kosher Food Industry News
New Midwood kosher supermarket raises questions about future of kosher super stores
New York…The recent opening of the Pomegranate mega kosher supermarket in Brooklyn’s Midwood neighborhood has created quite a debate in the kosher community. While some believe that the 20,000 square foot modern store with its Whole Foods look and plethora of upscale foods is the wave of the future not only in Midwood, but in other major kosher markets as well, others are not so certain. Sources say that at least one large Israeli investor contemplated opening a series of such super-stores in the U.S., but that he ultimately concluded that the economics just don’t “add up.” Experts say that with an investment estimated at $12-$14 million, Pomegranate will have to generate both volume and realize significant margins, not a common formula in most other large supermarkets that operate on volume and small margins. While prices of many of the items are competitive with surrounding stores, the large store also carries gourmet high-priced items that may not be in tune with the middle class community it serves, which is currently beset by a deep economic recession. The experts say that the Pomegranate model in kosher communities might have been a better bet in the prosperity of the late ‘90’s and the early 2000’s than in the current environment. In Israel, Supersol is said to be planning a network of 48 super stores directed at the Charedi (strictly Orthodox) markets, but is based on a combination of deep discounts and some high-priced upscale gourmet items. The Israeli model is said to bank on volume plus significantly higher margins for an estimated 5% - 10% of more affluent shoppers that will buy higher priced imported goods.
Some kosher purveyors told KosherToday that they expect some of the more affluent Syrian Jews in the Midwood community to frequent Pomegranate, but a well-placed kosher distributor in the Kings Highway area said that the Syrian Jews generally prefer to shop in the smaller stores that carry some of the delicacies and pastries that are part of their cuisine. Meanwhile, local stores in the area are convinced that once the euphoria dies down, customers will return to them, if only because of price. While uniform store personnel and a well-stocked store are the talk of the town, the industry will be watching whether the Pomegranate model will indeed become the trend of the future.
Kosher purveyors sour on Wal-Mart’s cold shoulder to kosher
Monticello, NY…While kosher meat and poultry was in short supply in many parts of the country this summer, the empty shelves at the Wal-Mart here were largely due to the store’s “cold shoulder” toward kosher in general, KosherToday has learned. Although the store in past years touted its successes with the kosher market, kosher distributors and purveyors say that the store has been far less accommodating this past summer. A source at Alle Processing, a major supplier of glatt kosher meat and poultry products, said that he had stopped doing business with the Catskills store because “it simply no longer made sense.” He cited as an example, “if a customer decided not to buy the meat when he reached the register, it was charged back to us.” Other purveyors said that the store bargained them “down to the bone” and often arbitrarily cut payments on bills. Yet another purveyor said that the store had hiked the price of his basic staple to the point where he did half the business of previous years. At one point, the store was believed to do some $2 -$2.5 million dollars in sales of kosher foods in just ten weeks of summer vacation, when an estimated 250,000 Jews descend on the Catskills region. Although Wal-Mart is the flagship kosher store in the Catskills area, with other stores in Monroe, Liberty and Ellenville, the purveyors say that their treatment was no better at the other stores. In fact, they say that despite a year-round large Chasidic community in Monroe, the store makes little effort to cater to them by carrying the kosher foods they would buy.
Major Orthodox organization said to oppose Hekhsher Tzedek
New York…Agudath Israel of America, one of the nation’s largest Orthodox Jewish organizations, is set to come out against the Hekhsher Tzedek, a new kosher symbol floated by Conservative rabbis to verify compliance with ethical behavior in the treatment of animals and laborers, KosherToday has learned. The organization’s highly respected Moetzes Gedolei Hatorah (Council of Torah Sages) is said to have authorized the organization to publicly oppose the new symbol initiated by Rabbi Morris Allen, a Conservative rabbi from Minneapolis who subsequently obtained the endorsement of the Conservative rabbinate. Sources say that Agudath Israel’s position will be consistent with the position taken by other mainstream Orthodox organization and certifying agencies, which basically oppose the broadening of the traditional definition of kosher, despite Rabbi Allen’s assertions that the new symbol would be in addition to the traditional kashrus symbol. The organization is scheduled to release its position in the coming days, virtually assuring that the Hekhsher Tzedek symbol will not be accepted by kosher businesses and the majority of core kosher consumers. Kashrus organizations, headed by the Orthodox Union, have argued that they fully rely on government oversight to protect consumers from the ethical considerations that the Conservative movement is concerned about.
The Hekhsher Tzedek issue has become the focus of widespread media attention, including a front page article in Saturday’s New York Times, but most media sources have failed to make the point that the Hekhsher Tzedek is opposed across the board in the Orthodox community. Even rabbis who told KosherToday that they welcomed the kind of concern for ethics that Rabbi Allen is advocating, are questioning how the standard could be practically implemented, why it is applied only to kosher foods and not to all Jewish-owned businesses (or, for that matter, non-Jewish), and how the kosher consumer could afford to fund such a new certification at a time of rapidly rising food prices. The debate surrounding the Hekhsher Tzedek symbol largely revolves around the beleaguered Agriprocessors plant in Postville, Iowa, which continues to be beset by an ongoing onslaught of allegations. On Friday, the Iowa Department of Labor slapped the company with $101,000 in fines for 31 alleged violations, 8 of which dealt with one extension cord. Agriprocessors had hired a former OSHA official who told a group of 20 visiting Orthodox rabbis on July 31st that the plant was “99% compliant with federal and state OSHA requirements.”
International News
Rabbinate and restauranteurs against blacklist
Jerusalem…by Idele Ross, KosherToday Israeli Bureau Chief…Jerusalem restaurant owners and the Chief Rabbinate have threatened to sue a rabbinic organization for publishing a controversial report on kashrut supervision in the capital’s kosher restaurants. The Jerusalem Post reported that Kosharot, an organization based in Elon Moreh, compiled a blacklist of dozens of kosher restaurants around Jerusalem that allegedly do not uphold the conditions required by the kashrut supervision of the Jerusalem rabbinate. The Kosharot report alleges that restaurants with normal kosher supervision are in fact only visited by a supervisor three to four times a week. Rabbi Eliyahu Schlesinger, responsible for the kashrut supervision in the Chief Rabbinate, told Post reporter Matthew Wagner that there are serious mistakes in the report. He rejects a number of the charges of the Kosharot investigation, which accuse restaurants of violating a number of the kashrut regulations, especially regarding the employment of non-Jews in the kitchen – a requirement for the rabbinate certification. Moreover, Schlesinger said that the Rabbinate discovered that many of the restaurants mentioned in the report were never visited by anyone from Kosharot. Some sources believe that Kosharot wants to see fewer non-Jews employed in kosher restaurants. A number of Jerusalem restaurateurs are considering legal action against Kosharot. Elon Moreh Chief Rabbi Elyakim Lebanon, president of Kosharot, told the JP that the list was for internal private use only. He said he was sorry it was distributed without context, however, he hoped the public interest would improve the level of kashrut supervision in Jerusalem.
Citrus fruit producer named exporter of the year
Tel Aviv…by Idele Ross, KosherToday Israeli Bureau Chief…The Trade and Industry Ministry together with the Export Institute have named Gan Shmuel Food Industries as the 2007 Outstanding Large Exporter and Golan Heights Winery as the Outstanding Small Exporter division. Gan Shmuel’s plants are at Kibbutz Gan Shmuel and Kibbutz Gat which also owns the Yotvatah dairy. The Gan Shmuel plant processes and sells citrus and tropical fruit products as well as tomatoes. It employs 420 people and provides a livelihood for the families on Kibbutz Gat and Kibbutz Beit Nir. The company exports to more than 50 countries with sales showing a 27% increase last year over the previous year.
Golan Heights Winery, founded in 1983, has achieved international prestige in its 25 years winning two awards at respected wine expos and competitions worldwide. Golan Heights wines can be found in some 30 countries under three separate labels: Yarden, Gamla and Golan. The winery employs 110 people. Judges for the awards included representatives of both the Manufacturers Association and Kibbutz Industries, various officials in the trade ministry, the government investment center and Export Institute.
Kashrus 101: checking vegetables for worms
Jerusalem…Checking produce for worms has become one of the basic responsibilities of kosher supervisors all over the world. Experts at detecting insects in produce have been appearing at seminars by major kosher certification agencies in the U.S. as well as in Europe and Israel. Earlier this month, a group of 50 kosher supervisors met here to learn the process of inspecting produce for worms in a program sponsored by the Belzer Chasidim, who also sponsor their own certification. Rabbi Moshe Veigh, an international expert in the detection of insects on produce, illustrated just how difficult detection can be. He used a series of slides to show how imbedded the insects are in produce. The Torah strictly forbids the ingestion of insects. Kashrus experts throughout the world have become concerned that even produce grown at hothouses are not immune from the insects. They have also raised the specter that normal washing, even under extremely high temperatures, does not eradicate insects embedded in the leaves and stems of produce. The emphasis on the detection of insects is a relatively new development for the kashrus industry due to the virtual elimination of pesticides in treating plants. Some caterers and restaurants hire special personnel who are experts at checking and cleaning produce. Sources say that in the U.S., kashrus officials were recently concerned about the inability to eliminate insects from strawberries. Companies like Alei Katif in Israel and Bodek in the U.S., who market pre-washed vegetables, have at times had to forego selling certain vegetables due to the inability to rid produce of the insects.
Last Week's News Headlines
Kosher Food Industry News
Rehiring of skilled workers key to supply of kosher beef
Postville, Iowa…The rehiring of skilled workers to replace the incarcerated illegal workers seized in the May 12th raid by ICE is the key to the resumption of the supply of glatt kosher beef, Agriprocessors officials acknowledged. The livestock industry has always found it hard to recruit skilled workers for certain jobs in slaughterhouses. At the same time, KosherToday has learned that the production of poultry has reached pre-raid levels, easing the shortage of poultry throughout the country. Many communities, however, are still being faced with shortages of beef products, although company officials say that they have been gradually increasing production. The charge of rehiring the workers has fallen to the Missouri-based Jacobson staffing firm. The firm has placed ads in cities throughout the country as well as in areas under U.S. control to locate the skilled workers. A firm spokesman explained that while the specifications of the jobs are being publicized, it is not offering any guarantees of employment. Several large groups like Somali workers have shown up in Postville and have told reporters that they were promised jobs, but in reality, says the staffing firm, it’s still only an application. Even after being hired, said the Jacobson spokesman, they would first have to clear the federal e-Verify program to determine their eligibility to work. Other groups, including workers from Micronesia, were also said to apply, again causing some media scrutiny. According to Agriprocessors, its workforce today is a “melting pot” of ethnicities and nationalities, all of whom are legal workers. In the early days of the Jacobson effort in June, Agriprocessors was even accused of hiring homeless persons and creating somewhat of a social problem in Postville, a charge that was rejected by Mayor Robert Penrod when he met with a delegation of visiting rabbis on July 31st. Mr. Penrod said the Somalis were blending into Postville's multiethnic fabric. Speaking of the Somalis, Penrod noted: "They kind of mingle among themselves, and they don't bother anybody.” Another Postville resident complained that the media scrutiny is worse than the raid itself, a fact echoed by city officials who are now concerned about dwindling school enrollment. Agri officials are hoping to be able to supply more product in advance of the upcoming holidays as the company’s phones are ringing off the hook with a demand for products.
A Brooklyn culinary arts program graduates its first class
Brooklyn…by Sarah Cohen…A group of 12 students trained in kosher French cuisine are in position to become professional chefs after becoming the first graduates of The Center for Kosher Culinary Arts in Flatbush. The students completed the first six week, 144 hour, culinary arts course at Kingsborough Community College. Dr. Elka Pinson, founder of The Center for Kosher Culinary Arts told KosherToday that the program was designed to cater to all of those who wished to learn from professional culinary experts in a full kosher kitchen. Under the supervision of the OK Kosher Certification, this program is instructed by professional chefs with impressive culinary experience. The course included many culinary fields such as preparing meats, baking, pastry making, wine pairing, and more. “We also provided the students with a special course on rabbinic requirements for a kosher kitchen, given by the OK Kosher Certification,” explained Pinson. The students were given an inside view of rabbinic requirements on checking vegetables as well as the role played by a mashgiach and more. Some of the graduates are from New York, but others came from as far as Los Angeles and Toronto to take part in this intensive program. “This was a once in a lifetime opportunity for kosher culinary artists to learn about what it takes to be in the kosher culinary industry,” said Pinson. The Center for Kosher Culinary Arts will again be offering this program in the fall on a part time schedule. “This program was highly successful and we are extremely proud of our first graduating class,” Pinson said. “We wish them luck in all of their future endeavors.” The Center will also introduce an advanced program in the upcoming winter. “This new program will offer our students a chance to perfect their skills and gain a more in-depth knowledge of the culinary arts,” he said. The Center for the Kosher Culinary Arts also offers regular recreational cooking classes year- round.
New community kitchen to the rescue of small entrepreneurs
Brooklyn, NY…A new community kitchen to help entrepreneurial chefs prepare pareve and dairy foods was recently launched at Kingsborough Community College in a program sponsored by the Sephardic Angel Fund, a business advisory service. The kitchen is under the supervision of the OK Kosher Certification which pre-approves all the ingredients that enter the kitchen. The idea behind this unique project is to allow entrepreneurs who rent the kitchen space from Angel Foods to package and sell their products while lowering overhead costs of starting up their own business. “When our clients come to our kitchen, they have access to state- of- the art equipment and a large space where they can mass produce their items,” said Irwin Dayan, Executive Director of the new Angel Foods program. Angel Foods has already helped entrepreneurs sell biscotti, cinnamon buns and other bread products. These products are usually available in neighborhood supermarkets in New York. Consumers using this unique kitchen not only receive the OK Kosher certification on their products, but also special marketing and financial services to help launch their products from the Angel Fund. “By having our kitchen at the Kingsborough Community College, our clients are able to consult with professional chefs that are located on site,” said Joanne Grazi, Director of Operations of Angel Foods. “There has been a tremendous response among kosher consumers to this service and we hope to attract many more culinary entrepreneurs to our community kitchen,” said Dayan.
Osem in major U.S. acquisition to enter salad market
Taunton, Mass…Tribe Mediterranean Foods, a major producer of hummus and other Mediterranean food products since April, 1994, was acquired by Tival, an Osem subsidiary, for a reported $57 million. With a 17% share of the U.S. salad market, Tribe products are sold well beyond the kosher market. Industry sources in Israel told KosherToday that Osem, which owns the Tsabar (Sabra) brand in Israel, had long eyed entering the salad market in the U.S. after its competitor The Strauss Group had acquired the U.S. Sabra brand. The sources were skeptical if Osem would compete with the Tzabar brand, which is said to be part of a long-standing agreement between the original owners. The Tival acquisition marked the continued expansion by Israeli multi-nationals of U.S. brands that are kosher. The Tribe brand was originally known as the “Tribe Of Two Sheiks.” Tribe was the first hummus to add such ingredients as Roasted Garlic, Roasted Red Peppers, and Cracked Chili, which the company says helped to take the product from an ethnic item to a mainstream offering.
International News
Russian Jews in Israel drive growing relationship
Haifa…Tensions in Georgia prevented a number of entrepreneurs, formerly from Tbilisi, from completing their journey. The group represents a growing cadre of Israelis, who were citizens of the former Soviet Union. Israelis' food exports to Eastern Europe have been steadily increasing with many former Soviet Jews serving as brokers and exporters. Avshalom, an Israeli vegetable exporter, owned by 12 agricultural settlements, signed an agreement to supply Russia with 7,000 tons of potatoes. Vegetable exports to Russia have grown by 450% in just one year. Concomitantly, many Russian Jews are involved in importing foods from the former Soviet Union, with increasing number carrying kosher certification.
Duly Noted…
In a story last week about the STAR-K, a typographical error referred to the agency as the STAR-Kiss. We regret the error. We are also pleased to note that in our story about glatt kosher at the new CitiField in New York, the glatt kosher catering by Kosher Sports is certified by the STAR-K.
From Here and There
Tel Aviv…The recent surge in food prices appears to be giving way to a new competitive price war between chains. Rami Levy Chain Stores is cutting the price of chicken to NIS 2.90 per kilogram on total purchases of at least NIS 199. The campaign is currently only taking place in Jerusalem-area stores, but CEO Rami Levi told Globes that he planned to extend it to other stores around the country.
Tel Aviv…Cham Food (Israel) unit Primera is setting up a poultry and egg joint venture in Wright, Iowa, at an investment of $60 million. The parties will own the venture in equal shares; Cham's investment will total $30 million. Cham Foods operates in Israel, Turkey, and the U.S.
Jerusalem…Last week employees and suppliers at the financially stricken fast-food chain Burger Ranch, staged a partial strike following non-payment of salaries, closing a number of the branches across the country.
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