In a shift, an Israeli brand, Bamba, has surpassed industry giants like Coca-Cola, Netflix, and Google to claim the top spot in “Globes” annual Israeli brands rankings for the first time since its inception in 2003. Bamba, the peanut-butter flavored snack, is owned by food manufacturer Osem-Nestle, which interestingly ranked 42nd in the list of Israel’s brands. It is an unusual occurrence for a snack to have a higher brand value than its own manufacturer.
This achievement comes amid a year of widespread price increases in the country, which has raised concerns about declining consumer loyalty. However, Osem-Nestle took a different approach compared to many other brands and chose not to raise the price of Bamba, which may have contributed to its triumph over international competitors.
The popularity of Bamba has been on the rise, and in 2019, it accounted for approximately 25% of all snack sales in Israel, amounting to over NIS 1 billion. Osem-Nestle invested around NIS 250 million to establish a new Bamba factory in Kiryat Gat, resulting in a 30% increase in production. Currently, the brand exports a million bags daily to 18 different countries, with estimated sales of NIS 351 million in 2022.
Osem-Nestle’s strategy seems to be paying off, and despite limited television advertising, Bamba has become a household name in Israel and remains a popular choice for birthdays and celebrations. Social media, particularly TikTok, has also played a significant role in maintaining the brand’s popularity, with hashtags related to Bamba garnering millions of views.
The emotional connection that consumers have with childhood products, like Bamba, and a sense of nostalgia in a year of rising prices, may be influencing consumer preferences more than experts anticipated. This could have implications for future consumer trends, although further examination will be required to understand the full extent of its impact.
In the “Globes” brands index, Waze, the traffic navigation app, secured the second position, followed by Google in third, WhatsApp in fourth, and Samsung in fifth. The top ten brands included Microsoft, Super Pharm, YouTube, Nike, and Mei Eden.
{Matzav.com Israel}
Tremendous