It took a lot of vision, courage – and Israeli spunk – to establish an overseas subsidiary company as early as the 1950’s. Osem established its first overseas subsidiary in response to the demand of Jews abroad for a variety of tasty kosher products, but over time, the company found its way to the hearts of consumers outside the kosher community as well. Osem’s diverse products are distributed through a sophisticated marketing and distribution network that comprises a variety of international marketing companies and private brands.
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Osem began exporting its products to England in the early 1950’s, and in 1959 the company established Osem UK, equipped with a large, sophisticated warehouse, a fleet of trucks, and a large, professional team of salespeople.
Osem UK soon became the largest importer and distributer of kosher food on the British Isles.
Even as it gained a footing in the kosher market, Osem UK developed a relationship with Britain’s leading chains, including Marks and Spencer, Tesco, Sainsbury’s and Morrison.
While active in the kosher market, Osem UK also developed a special relationship with buyers in leading department stores and supermarkets in Britain, including Marks & Spencer, Tesco, Sainsbury and Morrison. As a company committed to the highest quality standards, Osem managed to develop and sell products that were excusive to these chain stores, which market them under their own label.
As a result of Nestle’s partnering with Osem, and thanks to Osem UK’s specialization in the ethnic market, the company was also granted the rights to import and distribute Nestle’s ethnic products in the relevant British markets.
From the outset, Osem always ascribed tremendous importance to the US kosher market in which it became active in the 1960’s. The company recognized the immense potential of its unique high-quality brands and products with their high-standards of kashrut,
among this sizeable, diverse population, and it set its sight on breaking into both the kosher and general markets in the US.
This approach, together with the realization that their goals can only be accomplished through a local presence, led the Osem group to establish a US subsidiary in 1994 – Osem USA. The results were not long in coming: Osem USA is currently the most significant player in the marketing and distribution of Israeli food products in the USA, supplying goods to over 1,000 private stores and approximately 3,000 supermarkets across the US. Osem’s variety of quality and innovative products from Israel, which it distributes and markets throughout the US, created fierce competition for the traditional kosher food manufacturers that had been active in the US for years, forming the Israeli products into a new category all their own that stands apart from the traditional kosher products.
Although Osem USA specialized in the kosher and ethnic market, it is also the first Israeli company to sell Israeli brand-name products outside the kosher market, with an annual turnover of millions of dollars.
The ready-made food division was established at the end of 2008 to facilitate Osem’s growth and entry into international markets for convenience foods.
Its unique convenience products meet the increasing international demand for high-quality pre-made foods with natural ingredients and high nutritional value, for easy preparation.
Though its headquarters are small, this division steers the activities of the Osem Group companies in the existing and potential international markets. It is responsible for the activities of Tivall in Europe, the Tivall factory in Czechoslovakia, and the activities of the US version of Tivall, better known as the Tribe Mediterranean Food Company, and the Tribe factory in Taunton, Massachusetts.
The division has a logistic-marketing-sales infrastructure that extends throughout many European countries at thousands of sales points (through Tivall Europe), and throughout the US (through Tribe).
The division produces vegetarian products marketed under the following brand names:
And Mediterranean salads marketed under the following brand names:
The division also circulates knowledge between Tivall and Sabra for the sake of developing new products, and follows the developments in the convenience food market in order to provide adequate solutions.
The Osem Group’s commitment to provide complete, comprehensive and quality solutions in line with the food trends in Israel and abroad, is plainly manifest in Tivall’s modus operandi. Health, pleasure and convenience – these are the key words that transformed Tivall into a staple in the daily menu of millions of consumers in Israel and worldwide.
Tivall’s activities in Europe are wide-ranging and its scope is two times greater than its activities in Israel. It is the leading company in vegetarian convenience food on the European continent, legendary in its innovation.
Tivall’s European headquarters are located in Zeist, Holland. Its staff comprises a CEO in charge of the company’s activities in general, and various personnel responsible for the company’s finances, supply chain, sales and marketing. This staff steers the development activities of Tivall, Sabra and Jordan, ensuring that their products provide a complete and optimal solution in line with the local tastes and preferences in each of the various countries. The staff also makes plans and coordinates between Israel and the various Tivall factories to ensure that Tivall’s service meets the required standard. The products are sold in the various European countries by Tivall Europe’s local managers. These personnel have a strong presence particularly in the countries with the largest markets for Tivall products such as Holland, Germany, Sweden, etc.
Tivall operates commercially in four primary areas of Europe:
Holland– Tivall has strong business ties with the leading supermarket chain Albert Heijn, and together the two companies sell a joint product branded as Albert Heijn Tivall. The sales turnover in Holland has amounted to approximately NIS 60 million.
Scandinavia – Tivall’s activities in Sweden, Finland and Norway revolve around the Halsans Kok brand (Healthy Kitchen) purchased in 2006. Since this purchase, Haslsans Kok’s sales have doubled in volume, and it is now the leading brand in the Scandinavian countries. The sales turnover has amounted to approximately NIS 50 million.
England– This country is Europe’s largest market for vegetarian food products. Most of Tivall’s products in England are marketed under Tivall’s clients’ private labels. Tivall recently began marketing its products under the Garden Gourmet label, and this brand is marketed under private labels as well.
The rest of Europe – In Germany, Switzerland, Belgium, and Italy, the Tivall products are marketed primarily under the Garden Gourmet label, and also under the labels of local partners (in Switzerland and Italy).
Tivall is also responsible for the Sabra and Jordan brands in Europe:
Sabra Salads are marketed as such throughout Europe. In Holland, Sabra Salad sales have increased significantly in recent years.
The Yarden UK Company was purchased by the Osem Group, and now markets Sabra Salads in England in collaboration with Osem UK.
Yarden France is a brand sold in France in collaboration with a local company.
In May 2007, the Osem Group established a Tivall factory in Teplice, Czechoslovakia. The factory is situated on a 42,000 sq. m plot, its production facilities and offices extending over 8,000 sq. m, and its logistics facilities covering an area of 1,000 sq. m.
The factory’s founding was prompted by the need for increased production resulting from the accelerated growth of Tivall’s sales volume in recent years. These new production facilities were established primarily to help the company keep up with the dizzying pace of Tivall’s international growth.
The physical presence of a Tivall factory in Europe also enabled the company easier access to its primary export markets in Western Europe, and boosted its position vis a vis its European competitors. Thanks to our factory in Czechoslovakia, Tivall’s products can reach any destination in Europe within 24 hours.
Tivall’s factory in Czechoslovakia was pre-designed for large-volume production. The factory has wide infrastructures which will enable an increase of the production lines within a relatively short time. There is currently one production line operating in the factory, which primarily produces main-course products such as schnitzel, hamburgers, patties, etc. The factory employs over 100 production workers as well as professionals in the fields of administration, engineering and quality control etc. In 2011, a new production line will begin operating to help meet the demand.
The Czechoslovakia factory meets the most stringent standards of hygiene. The factory’s meticulous planning ensures the easy and convenient maintenance of high standard cleanliness and hygiene, its various areas being distinctly isolated from one another.
At the end of 2008, Tivall purchased the American Tribe and Veggie Patch companies. The two companies were merged, enabling them to exploit the synergetic advantages of their joint administration, sales, production and distribution etc.
Tribe produces popular Mediterranean salads – mainly a variety of hummus salads – and markets them to the American population, providing a diverse and high-quality line of products that caters to the ethnic food trend, as well as the health-food trend so conspicuous in today’s food market. The company markets its own products, as well as Veggie Patch products (the label used for Tivall’s products manufactured in Israel and Czechoslovakia for sale in the US.)
Tribe is the second largest company in its field in the USA, headquartered in Taunton, Massachusetts. The company began producing its hummus products in 1994, and mushroomed into America’s leading company in this category within two years. Tribe’s hummus is unique in that it does not contain any preservatives. Tribe has two production lines for hummus products:
Classic hummus– already manufactured for many years.
Tribe Origins– more like the Israeli hummus in flavor, it can be bought with a variety of toppings. This line of products was recently introduced by Sabra into the Tribe factory to meet the rising demand for hummus with toppings.
Veggie Patch, whichmanufactures and markets chilled meat substitutes, was purchased to support Tivall’s growth and expansion strategy in the US. The company’s acquisition of Veggie Patch served as a springboard for Tivall’s breakthrough into the US market for chilled and frozen meat substitutes, whose sales volume is an estimated $600 million. To enhance the quality of its products marketed in the US, Tivall closed down the old Veggie Patch factory and all the products currently marketed under this label are produced by the Tivall factories in Israel and Czechoslovakia.
It should be noted that although about 60% of Tivall’s sales occur outside of Israel, until this point Tivall had no presence whatsoever in the US market – the largest and most developed market in the realm of meat substitutes.
In our global village - in which the markets are open to almost everyone - Osem competes with international food giants, attempting to gain a relative advantage. Despite the differences in taste, the distance, the costs of delivery,
customs and taxes, more than 50% of the company’s export sales are actually made in the general, international market.
The company managed to locate and develop a solution to meet the existing need for gluten-free products: crackers, pretzels, packaged instant meals, cakes and other special-needs products, sold under the private labels of various companies worldwide.
Over the course of many years, Osem has also developed a large, steady market for its unique crackers currently sold in leading supermarket chains in Germany, England, France, Holland and Switzerland.
Osem also established an enthusiastic international market for the popular Israeli tiny pasta, also known in Israel as Ben Gurion rice, which is now being served as an "Israeli Couscous" at elite restaurants throughout the US and worldwide. Likewise, Osem’s instant soup powders have become a hit in England, and Osem’s Ugot Ha’bayit cakes have become an everyday item in the typical Greek household pantry.