Nestle, Osem, Bamba, Food

Nestle Corporation to Purchase Intellectual Property Rights to Osem Foods, Including Bamba

The Swiss corporation, which already owned Osem, will now be able to move production or express its desire to do so without having to pay a hefty fee for using Osem's food formulas.

Production of a major Israeli brand is now no longer guaranteed to be local. Osem factory in Kiryat Gat. (Photo: Flash90)

Having already acquired ownership of the Israeli food company Osem Investments, Ltd., Nestle S.A. is now set to acquire the intellectual property rights to all of Osem's products, including both trademarks and food formulas, according to reporting by Calcalist.

Per Calcalist, Osem is one of the country's largest food companies, employing over 4,000 Israelis locally, operating eight factories, and enjoying some 4 billion NIS in sales. In addition to snacks and biscuits, Osem provides a whole range of food products including pasta (almost 50% of the country's local market), and things like soups and soup nuts (slogan: "sometimes the soup is just an excuse).

Nestle had previously acquired the right to draw dividends and channel Osem's general management when it bought out the company in 2016, but by purchasing its intellectual property, the company can now move production out of Israel without having to pay a hefty fee for use of food formulas and trademarks.

Calcalist expressed the fear that this may not only lead to Nestle forcing Israel to give it tax breaks lest factories be shut down and workers be laid off, but also that it may decide to do so to curry favor with anti-Israel and pro-BDS clientele, especially given the furor over the war in Gaza.

The intellectual property purchase still needs to be approved by the relevant government authorities.


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