Business Information

Osem’s Business Environment

 

Osem Investments Ltd. is the parent company incorporating the group of Osem companies. The group focuses solely on the production and distribution of food products, and it is among Israel’s largest food manufacturers and marketers, operating in the fields of snacks, soups, baked goods, pasta, sauces, ready-made cakes, chocolate, cereal, concentrates, sweet powders, pasta, coffee, canned goods, frozen meat products and meat alternatives, chilled salads and meat products, ice cream and more.

Osem’s various product lines constantly face competition from local products as well as some imported brands.

In most areas, the competitors are several large local brands. However, our line of baked goods, for example, competes with a large number of small and medium-sized manufacturers. Some of the Osem Group’s products are influenced by seasonal fluctuations in sales.

The prices of pasta products produced by the group are subject to price control legislation under the Product and Services Price Stability Act (Temporary Order) 5746-1985.

 The Osem group produces over 1,000 different food items, which are currently manufactured on ten production sites throughout the country and marketed through local distribution centers. The group also exports its product lines to various countries, particularly in Europe.

Strategic Collaboration with Nestle

The Osem Company has signed exclusive collaboration agreements with the Swiss Nestle Group, for the exclusive distribution of Nestle products in Israel through Osem’s marketing and sales channels, and for Osem’s production of Nestle products in Israel. Nestle also provides Osem with technical assistance in the fields of research and development, as well as extensive rights to use the Nestlé know-how within the group.

On May 22, 2001, the General Meeting of Osem shareholders approved the revision of the contracts to improve the terms of trade between Osem and Nestle, allowing for complete pricing transparency with Nestlé companies throughout the world. Some of the revised contracts have yet to be signed.

Nestle is Osem’s largest shareholder, holding approximately 59% of the company shares.