At the Economic Conference organized by Maariv, Walla, and The Jerusalem Post, Yaron Bloom, CEO of the Diplomat Group, one of Israel's leading import companies, spoke with Maariv editor Golan Bar-Yosef. Bloom welcomed the "What's Good for Europe is Good for Israel" import reform and stated that it would create more competition on Israeli shelves. He also urged that the reform be expanded to include imports from the US, which the Minister of Economy is seeking, as quickly as possible.
Bloom further noted: "Every time the government has eased importconsurestrictions, it has created competition for the large local manufacturers, expanded consumer choices, and influenced prices. The Israeli consumer goods market is largely dominated by local manufacturing. The combined market share of Israel's four leading importers is smaller than that of each of the two largest local manufacturers."
According to Bloom, Diplomat has succeeded over the years in fostering competition in at least four sectors previously dominated by major local manufacturers—offering high-quality alternatives to Israeli consumers. These sectors include diapers, instant coffee, infant formula, and snacks. "The way to reduce the cost of living in Israel is to continuously create incentives to promote competition while simultaneously removing barriers. Imports are undoubtedly one of the key drivers of competition," said Bloom.
Addressing Challenges of War
Bloom also spoke about the challenges posed by the ongoing war, explaining that Diplomat, like many companies in Israel, faced numerous obstacles since the conflict began. These included many employees being called up for reserve duty, shipping delays due to Houthi attacks, and increased consumer demand.
"In our case, as suppliers of food and consumer goods, we couldn't slow down—on the contrary, we had to step up operations to meet the needs of Israeli consumers and ensure that store shelves remained stocked. Despite the difficulties in maritime shipping, we accelerated deliveries to Israel and managed to prevent significant shortages. The war has proven that during times of conflict, imports are crucial to the Israeli economy. To me, this highlights the importance of the government's food security policy, which recognizes imports as an essential complement to local production during wartime," Bloom stated.
On Price Increases
Bloom also addressed rising prices, saying, "We are committed to increasing competition and offering a variety of products and competitive prices for Israeli consumers. Like all Israelis, we acutely feel the challenges, and we made every effort not to raise prices during the war—until global price increases forced us to adjust prices in Israel as well."
He added: "We operate in five other countries worldwide, which allows us to compare business practices in Israel with those in other markets. There are unique factors in Israel, such as its status as an isolated market and excessive regulation. According to a recent Competition Authority study, the competition introduced by importers of toiletries and food products has helped curb price increases in Israel."