G Willi Food International Ltd (NASDAQ: WILC)

G. Willi-Food International Ltd. is an Israeli company specializing in high quality, great tasting kosher food products. The company is engaged, directly and through its subsidiaries, in the design, import, marketing and distribution of over 650 food products worldwide. It purchases these products from more than 125 suppliers located in Israel and across regions such as the Far East, Eastern Europe, South America and Western and Central Europe.

The company generates revenue primarily from the sale of imported food products to customers in Israel, including supermarket chains, wholesalers and institutional clients. In the year ended December 31, 2025, substantially all of its revenue was generated in Israel with less than 0.5% coming from exports outside Israel. Product sales are divided among categories such as dairy and dairy substitute products (34.8% of sales), canned vegetables and fruits (18.0%), cereals, rice and pasta (12.2%), oil products (7.9%), and fish products (12.2%). The company serves approximately 1,500 customers and about 3,000 selling points, with sales distributed as follows: 55% to large retail supermarket chains, 15% to small supermarket chains, 9% to wholesalers, 8% to private customers, 7% to catering and restaurant institutions, 1% to government customers and 5% to other customers.

The food distribution business in Israel is highly competitive with respect to both imported and locally produced food products. The company faces direct competition from local manufacturers and from a number of importers across various product categories. For edible oils, competitors include Shemen, Tomer, Taaman, Solbar and Y. T. V Foods Industries Ltd. For fish products, competitors include Fodor (Starkist and Yona), Posidon and Williger of the Neto Group, Filtuna, and Shastowits. For canned fruit and vegetable products, competitors include Yachin-Zan laKol, Williger of the Neto Group, Sugat and Tomer. For pasta products, competitors include Osem, Barila, Williger of the Neto Group, Taaman and Tomer. For dairy and dairy substitute products, competitors include Tnuva, Tara, Strauss, Seyman and Gad Dairy. The company’s competitive advantages stem from its well known brands such as Willi-Food and Euro European Dairies, its ongoing investment in a new logistics center, and its ability to source products from over 125 suppliers worldwide. Low barriers to entry mean new competitors continually enter the market, but the company seeks to maintain its position through brand promotion, product diversification and improved distribution. The company also highlights its logistics center expansion, which will add approximately 11,000 cooled or frozen storage spaces compared to the current 8,500 dry, cooled or frozen spaces.

The company’s products are marketed and sold to approximately 1,500 customers and about 3,000 selling points throughout Israel. Its customer base includes large retail supermarket chains such as Shufersal Ltd, Rami-Levy Ltd, Osher-Ad, Viktory, Yohananof, Mahsanei Hashuk, Freshmarket, and others. Additional customers consist of small retail supermarket chains, government institutions, wholesalers, restaurants, hotels and hospitals. The company also serves institutional clients such as schools, police stations, prisons, the Ministry of Defense and kibbutz settlements. Sales to large retail chains accounted for 55% of total revenue, while small supermarket chains contributed 15% and wholesalers 9%. Private customers represented 8%, catering and restaurant institutions 7%, government customers 1% and other customers 5%.