The Cost of Kosher: Rabbi Hausman becomes a Reporter…

(Legal Disclaimer: “The following blog contains conversations that have been highly dramatized due in large measure to the author’s handwriting being illegible and that no one is paying said author to be objective or to check facts.”)

In my ongoing quest for cut-rate Kosher Kedem, I decided to do something that arouses about as much anxiety as parking enforcement in NYC. But there are necessary evils in life—such as alarm clocks and living adjacent elevated trains—that must be endured so that one doesn't go through life sleeping.

So for you dear reader, and for Kashrut consumerism, and for the Jewish people, and for God, and for my wife (note the order), I overcame my inhibitions and decided to pick up the phone and talk to a stranger … which lead to my having to speak with another stranger…and then one more after that…till she hung up the phone, but not before I got what I wanted:

Wholesale prices.

The day began with a call to Kedem Headquarters :

“Good morning, Um, can you tell me something about wholesale sales to individuals?”

Jewish Receptionist: “You’re from Los Angeles right?”  (Note: Only a Jewish receptionist would answer a question with a question.)

Me:  “Um, Yes. Where are you?”

Receptionist: “New Jersey.”

Me: “I’m sorry.”

Receptionist: laughter... “Well, I am from LA originally.”

Me: “Is  that so?”

The next five minutes can be summarized as follows:  Jewish geography.  

Eventually, I got the numbers for Kedem’s LA distributor (Shalom and Sons) and a Kedem Sales Manager in the Valley. Apparently, all the kosher shops in LA get their Kedem products from the same distributor. I tried the Sales Manager first, an amiable chap. “…Well, Ralph’s basically gives the grape juice away around Pesach. Same with matzah. They order from a big distributor: D.P.I. I bought a case of matzah for $2.99, the real cost is over five dollars! It’s how they get you to come in. They give away Champagne at Christmas and New Year’s…’

The receptionist at Shalom and Sons was far less friendly.

“No, we don’t sell to individuals.”

“ What about synagogues?”

“Synagogues yes—and anyone with a resale license.”

"Can you tell me the price for a box of Kedem grape Juice? 64oz?"

“$39”

“How many in a box?”

“8.”

“Well, thank you so—“  Click.

The way the math works, a single 64oz bottle of Kedem grape juice is $4.87, which means that kosher shops have 25-30 percent mark-up. 

In summary, stores like Ralph's and Stop & Shop who sell Kedem for $2.99, are doing so below cost. In contrast, Kosher shops, who purchase Kedem from a single distributor and sell Kedem for profit, must price their grape juice around $5.99 to make a reasonable profit.