The word “settlement” is a hot-button issue for the rest of the world with regards to Israel, but Carmit, Cadbury’s distributor, likes settlements, if it means a $2.5 million out-of-court settlement from Israel’s Strauss.
Carmit launched Cadbury products in Israel in 2002, but the deal didn’t seem to work, and the reason was soon discovered; Strauss had refused discounts to retailers that also stocked competing Cadbury products. Strauss’ tactics were in violation of anti-trust laws in Israel, and in 2006, Israel’s Anti-Trust Authority fined Strauss $1.1 million while giving Carmit the right to sue Strauss for damages.
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At the end of 12 years in court, Strauss and Carmit decided to make up, with Strauss paying Carmit $2.5 million, and agreed to purchase $14 million of Carmit’s Cadbury products over the next four to ten years.