Israel’s G. Willi-Food International, a distributor of kosher products, has received notice from European dairy giant Arla Foods to end a distribution agreement.

G. Willi-Food’s Gold Frost subsidiary has distributed Arla products in Israel since 2005. The termination takes effect on 31 December.

The end of the contract “may have a significant negative impact” on G. Willi-Food’s operating results, the company said in a statement yesterday (19 October).

However, G. Willi-Food added it “believes that it will be able to enter into agreements in the near future with alternative suppliers for a portion of the products currently purchased from Arla”.

Gold Frost distributes kosher foods for consumers worldwide. The company develops and imports frozen and chilled products, including dairy items such as cheeses and butter, as well as fish and vegetables. Its headquarters is in Yavne, Israel.

G. Willi-Food is engaged directly and through its subsidiaries in the design, import, marketing and distribution of over 600 food products worldwide. It markets and sells those products to more than 1,500 customers in Israel and around the world including large retail and private supermarket chains, wholesalers and institutional consumers.

In July, the company has this year appointed a new CEO, followed earlier this month with the hiring of a new CFO.

In August, G.Willi-Food posted a slump in first-half profits as the Kosher foods distributor cut prices amid a “massive” increase in inventories