The Aroma Espresso Bar cafe chain has initiated legal action against one of its primary raw material suppliers, Sharon-Puratos. According to the lawsuit filed with the Jerusalem District Court, the chain is demanding 3.8 million NIS in damages, alleging that defective components provided by the supplier compromised its flagship products and caused extensive financial harm.
At the center of the dispute are baking improvers used by the chain to ensure the quality of frozen pastries, including croissants and cinnamon danishes. According to Aroma’s allegations, during May 2023, it was discovered that the supplied components created an unwanted reaction when combined with dairy-based doughs, resulting in a sharp, pungent odor. Following an alert from the supplier regarding the need to stop using the material, the chain was forced to immediately cease product distribution. Due to the difficulty of distinguishing between unaffected products and those containing the defective component, the chain conducted a comprehensive destruction of pastry stock produced between May 11 and May 24, 2023.
Aroma claims that the supplier admitted in retrospect that changes were made to the improver's components without updating the chain in real-time and without performing sufficient quality control. Furthermore, the lawsuit alleges that a replacement baking improver provided by the company was also found to be defective, leading to further product destruction. The economic damages detailed in the claim include approximately 2.95 million NIS for the value of the destroyed products, approximately 161,000 NIS for franchisee inventory loss, as well as logistics and destruction costs. In addition to direct damages, the chain alleges significant loss of revenue, reduced profitability, and damage to its reputation with customers.
This case follows failed mediation attempts between the parties. As of now, a statement of defense has not yet been filed by Sharon-Puratos, and no response has been provided to the allegations detailed in the lawsuit. The practical implications for food businesses underscore the importance of strict quality controls in the supply chain and the financial and operational risks associated with reliance on external suppliers.