Osem, Israel’s 3rd Largest Food Producer, Considers Move to Switzerland

By Aryeh Stern

Osem, one of Israel’s oldest food producers and currently the country’s third-largest, may be on the brink of leaving Israel as part of Nestle’s international reorganization program.

Nestle, the global food conglomerate that now owns Osem, is in the process of acquiring Osem’s intellectual property, including patents, formulas, recipes, and brand names. This move could lead to the complete relocation of Israel’s third-largest food producer to Switzerland, posing a potential threat to the country’s food security and causing the loss of numerous jobs.

Established in 1942 by industrialist Eugen Propper, Osem has played a pivotal role in producing staple foods for Israel, including the popular Bamba. The company has been an integral part of Israeli households since its founding.

Eugen Propper’s son, Dan, took over the company in 1966, transforming it into a publicly traded entity. Under Dan’s leadership, Osem began marketing Nestle products in 1995, leading to Nestle acquiring a majority stake by 1997. In 2016, Nestle completed the purchase of all Osem shares for NIS 3.1 billion.

With Nestle’s ongoing acquisition of Osem’s rights, there is a possibility of reducing or halting local production based on Nestle’s considerations, including potential political pressure to boycott Israel.

The Justice Ministry and tax authorities are urged to intervene and review the conditions of this acquisition to safeguard the interests of Israel’s food industry and employment landscape.