G. Willi has also engaged in a major advertising campaign to improve brand awareness in its core Israeli market via both television and Internet.  Management has wasted no time in utilizing the recent inflow of cash, and the company plans to invest additional funds in its promising new Israel-based export division, which it sees as a key driver of organic growth internationally.

Management also revealed in the call that the company is examining two new opportunities that could have an enormous contributive effect on future growth.  First, it is negotiating the potential acquisition of an unidentified American firm, which would provide a foothold for the company to further establish its brand name in the U.S.  Second, in response to a question posed in the call, G. Willi’s president and COO alluded to a pending agreement with a prominent American supermarket chain in which the company could become a supplier of private label foods for the chain.

Even without these pending developments, the company expects to see increasing growth from its expansion into the United States, which currently accounts for about 20% of total sales.  Surprisingly, only a small fraction of buyers of kosher food products do so for religious reasons and the company expects to capitalize on the trend toward healthy food alternatives to capture a greater share of the estimated $13 billion U.S. kosher food market.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

The kosher food market is a growing and globally expanding market as the number of kosher food consumers worldwide is now eclipsing 10 million. A staggering statistic which bodes well for G. Willi- Food International LTD. (NasdaqCM: WILC), an Israeli-based company specializing in high-quality, great-tasting kosher food products. The Company is a dominating force in the still growing kosher food industry in Israel and has now set its sights on the U.S. market.

As one of Israel’s leading food importers, WILC markets and sells its food products to over 1,500 customers in Israel and around the world including large retail and private supermarket chains, wholesalers and institutional consumers. In 2008 the Company sold 80% of their products in Israel, with the remaining 20% being split equally between the U.S. and Europe. However, looking forward CEO Joseph Williger sees WILC’s global presence altering dramatically with a goal for 2011 of 50% of products being sold in Israel and the remaining 50% being split between Europe and the United States.

Many Americans might think kosher foods are sold mainly to Jews or vegetarians, but surprisingly the largest consumers of kosher products are the one in five people who are of Muslim faith. Furthermore, as Americans become environmentally sensitive in a time of “label reading,” an increasing number of people of non-muslin decent are now turning to kosher food products. Only about 15% of people who buy kosher do it for religious reasons, according to Mintel, a research group that last year produced a report on the kosher food explosion. The top reasons cited for buying kosher? Quality, followed by general healthfulness.

Even with market data revealing a $200 billion kosher food industry growing at 15% year-over-year (Market Trend, 2008) the majority of the food industry has yet to realize the profits to be made by converting their food to kosher, giving WILC the opportunity to dominate the market both in the U.S. and Europe.

With continued growth and expansion into the U.S. market, WILC should generate revenue and earnings growth of a minimum of 25% in 2010. Since RedChip began coverage in mid-December 2009 WILC has had an impressive 35% rally to the upside from $5.09 to a January 19 close at $6.87.

With a game-changing geographic expansion underway and deals with major U.S. retail chains in the works, WILC is well positioned to benefit from a growing Kosher market where it has the advantages of experience and financial strength.

Disclosure: G. Willi-Food International, Ltd. is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.