Osem Ltd. is the leading exporter of kosher goods to the United States. Osem USA, its subsidiary (100% ownership) in the U.S. is considered to be the number one importer of food products from Israel, and runs a strong and well-organized marketing operation.

Osem has always believed in the importance of the Jewish market in the United States. The company recognized the great potential of its brands, unique products, their quality and their high levels of kashrut for this large and varied sector of the population. While most manufactures invested most of their efforts in trying to conquer the general markets and ignored the Jewish market, Osem never lost interest in this here and combined its efforts to penetrate both the Jewish and the general American markets. Based on this approach, and having realized that they cannot really succeed without a local presence, Osem decided in 1994 that it would set up an American subsidiary which was named Osem USA.

The result was soon felt. From 1994 to the present, Osem USA has increased its sales more than fourfold, and the annual growth rate continues at a high percentage every year.

 

Distribution System:

In the United States Osem USA operates as an importer and super-distributor. Israeli companies that have sought the help of Osem USA have found that it is an efficient and almost ideal partner who is familiar with both American market needs and Israeli manufacturing capabilities.

At present, in the United States the company imports, markets and distributes Osem products and the Habayit cakes as well as products of the following companies–Wissotsky, Rishon Matzos, Carmel Matzos, Einat, Couscous Foods, Miloz, Progress, Tempo, Beit Hashitah, B&B (Biggle and Bagel[MD1] ), Man'amim, Creative, and Menorah Candles.

To date, Osem USA represents the most significant factor in the marketing and distribution of Israeli food products in the United States. It reaches more than 1000 independent stores and 3000 supermarkets throughout the United Sates. Osem USA distributes products from Israel in the following stores (among others): Pathmark, Kings, A&P, Waldbaum, Wegman’s, Price Chopper, Giant, Shoprite, Albertson’s, Ralph’s, Smith;s, Von’s, Safeway, Kroger, Wal-Martk, Publix, Acme, Crown, Fairway, Associated, National Wholesaler’s, Food Emporium, Fred Meyers, Fry’s, H.E.Butt, Hiller Markets, QFC, Super Fresh.

 

Local Competition:

Osem USA encounters some tough competition in the American market from both familiar long-standing local manufacturers, and from Israeli manufacturers. Thanks to the wide variety of innovative Israeli products that the company distributes and markets in the United States; thanks to its marketing and sales efforts; thanks to the fact that it is a strong brand with high-level Kashrut certificates; and the taste of home, thanks to all of the above Osem has become the leading brand in the kosher foods market. Osem USA has succeeded in convincing the American Jewish consumer to broaden the range of kosher products that they consume to include convenience foods such as ready-made cakes and personal dehydrated ready meals (Manot Hamot), health foods such as crackers and pasta, and Middle Eastern foods such as snacks like Bissli and Bamba.

In the course of the last year, we have been witness to an increased demand for Israeli products in the United States. This has occurred in both the Jewish market and in the general American market, and has stemmed from a sense of empathy for Israel as the country struggles for peace. As a leader in the field, Osem is really benefiting from the increased demands thanks to its strong presence in these markets

 

What types of products sell especially well?

Over recent years, there has been a clear-cut on-going trend of increased sales of snacks such as Bissli and Bamba. Also Osem’s Habayit ready-made cakes which the company only began to export five years ago have shown increased sales of 30%-40% each year.

There is still great demand for Osem’s traditional products such as dehydrated bouillons, of which the best seller is the paraveh (non-meat/non-dairy) chicken soup powder, the soup almonds, special pasta products such as baked pasta and farfel. The bulk of the sales in the kosher market are linked to the Jewish and Israeli festivals, the most important being Pessach or Passover.

Although Osem USA specialized in the kosher and ethnic markets, they wanted to go further afield and moved to additional markets. Thus Osem became the first Israeli company to sell millions of dollars worth of Israeli brand products outside the kosher market.