Tnuva Addresses Cottage Cheese Shortage Caused by Alon Tavor Plant Logistics Glitch

Tnuva, Israel's leading food company, has publicly addressed the recent unusual shortage of its cottage cheese products, which was caused by a failure in the automated warehouse control system at its Alon Tavor dairy plant. The malfunction, linked to a complex logistics system supplied by global automation firm Dematic, led to delays in pallet dispatch and disrupted supply despite ongoing production.

Anat Gross Shon, Tnuva's Deputy CEO, explained that the issue first emerged days before the Shavuot holiday, a peak period for dairy consumption, and recurred about three weeks ago, causing supply delays. She emphasized that production never stopped and millions of cottage cheese cups were delivered weekly, with overall sales up 4.5% since the start of the year. The problem stems from the automated system's inability to continuously collect products from production lines, resulting in bottlenecks that manual handling cannot fully resolve.

Gross Shon rejected claims that Tnuva benefits from reduced cottage cheese sales, clarifying that consumers unable to find Tnuva's product tend to buy competitors' brands instead. She also dismissed concerns about lasting reputational damage, expecting customers to return now that supply has normalized. The company has implemented operational workarounds, including rerouting pallets directly to cooling rooms to accelerate dispatch.

Dematic technicians have been unable to visit Israel due to security concerns, but Tnuva's engineering teams have collaborated remotely with Dematic to develop solutions. The company plans to rebuild inventory buffers in the coming weeks to meet rising demand. Tnuva, which controls nearly half of Israel's dairy market and dominates many regulated product categories, continues to invest heavily in infrastructure despite the challenges. The firm recently reported strong financial results and is preparing for a delayed public offering.

Gross Shon noted that industrial disruptions are common in large manufacturing operations and that Tnuva has maintained supply even during crises such as recent conflicts. She declined to comment on whether anti-Israeli sentiment affected Dematic's technician availability. Overall, Tnuva aims to prevent future supply interruptions but acknowledges that occasional technical faults are inherent to complex production and logistics systems.