Kosher supermarkets, like other food retailers, have been grappling with declining sales and dwindling profits.
The grocery industry is expected to report a profit drop of more than a quarter in 2018, according to research firm IBISWorld.
“The grocery sector is going through a difficult time,” said Mike Cottrell, a senior analyst with IBISworld.
“People are looking for options to supplement their income, and that includes the option of buying groceries from a kosher supermarket.”
Cottrell says Kosher’s move will be welcomed by Jewish consumers who are increasingly finding their grocery options limited by the rise of veganism.
Kosher has already been the focus of protests by animal rights activists in the United States and Israel, as well as in Canada and the UK.
In 2018, Canada and Israel introduced laws that require kosher supermarket stores to offer a range and more affordable options for vegan customers, while in the UK, there is an increasing push to include vegan food options in grocery stores.
With its Kosher-branded products, Kosher is hoping to capitalize on its success and capitalize on the growth of the kosher food market.
Bakers’ markets, for example, are popular among vegan shoppers.
A survey of 1,000 shoppers conducted by grocery chain Cargill found that 84% of them plan to buy vegan groceries in the near future.
It is possible that Kosher will offer a more limited range of products in the future, but it is also possible that it will only offer kosher-approved products, according Bakers’ vice president of retail and wholesale, Jason Lassner.
He told Business Insider: “If you look at the market we have, if you look to the big-box stores, we’ve had a very healthy, healthy year.
And so, it’s something we think is important.”
Kosher is not the only company to explore a kosher option.
On February 6, grocery chain Whole Foods announced that it would add vegan options to its offerings, including dairy products, soy milk, and nuts.
But Lassener says the biggest obstacle is that many of the products are not vegan.
Lassner said: “The majority of the vegan products we offer are not kosher.
So, you really need to make sure you have kosher food in there.”
Lissner added that Koshers’ offerings could change, but the company is not yet committed to introducing a vegan product.
Cargill’s Lassson told Business Insiders that while Kosher would like to see a vegan option, the company still believes the majority of its customers are already vegan.