Boston, MA -- (ReleaseWire) -- 07/08/2014 -- In April 2013 the Ministry of Health held a tender for supplying milk formulas in governmental hospitals. In each hospital, two milk formulas were selected. By the end of the tender, Promedico Ltd with Similac won in hospitals corresponding to 78% of child births, Osem Food Industries Ltd with Materna won in hospitals corresponding to 69% of births, and finally Teva Pharmaceutical Industries Ltd with Nutrilon reached 52% of births. The purpose of the tender is to allow fair competition among formula suppliers, with the perception that the formula given in hospitals to new-born babies will later be used in the follow-up stages.
Osem Food Industries dominates the category, holding a value share of 54%. Its most senior brand is Materna, most associated with milk formulas. The Materna brand is used for a large variety of products. Osem uses the slogan "All the professionalism of Materna, all the experience of Gerber" in an attempt to increase its value share, relying on the Materna brand name. In 2013 Materna invested in maintaining its share by launching campaigns and changing packaging. Furthermore, in May 2013 Materna was ordered by a court to donate thousands of units to charity.
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Euromonitor International expects the milk formula supplying issue to stand in the future legislative agenda. Hospitals are expected to encourage more breast feeding in future law, while currently hospitals tend to encourage formulas first. Later on the competition is expected to stand on fairer ground, because tenders will take place on an annual basis. In addition, supervision regarding products' nutritional values is expected to remain strict, following the past scandal of Remedia, which in 2003 resulted in babies' deaths due to a lack of key ingredients, and the formula had to be withdrawn.
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The Baby Food in Israel market research report includes:
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Product coverage: Dried Baby Food, Milk Formula, Other Baby Food, Prepared Baby Food.
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