As part of Israeli food company Osem-Nestlé’s strategic plans to expand its operations in Europe, in view of the growth potential of vegetarian food consumption, Osem Investments Ltd. is investing US$30m to set up a plant in the Czech Republic to manufacture and distribute vegetarian food products, based on the know-how and expertise of its subsidiary Tivall.
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Osem Investments owns 51% of Tivall, which registered a rapid growth in recent years, exports half of its production, mainly to Europe, all manufactured in the plant in Kibbutz Lohamei Hagetaot, which is operating in full capacity to meet the demand in the European markets for vegetarian food products.
Tivall is a very profitable company, and is Osem’s only edge on foreign markets. It posted a net profit of US$10.22m in 2004, an increase of 40% in two years. Tivall is a market leader in Germany for meat substitutes, with 70% of the market, and has half of the Swedish market and 40% of the Dutch market and is in second place in the UK. The site of the new plant in the Czech Republic, near the German border, will enable Tivall efficient distribution to central and east European markets.
