Tnuva Shuts Olivia Spread Production Line, Moves Manufacturing Abroad

Tnuva has decided to close the production line of its longstanding spreads brand Olivia, transferring manufacturing overseas. The Olivia factory, located within Tnuva's dairy complex in Rehovot and employing 20 workers, will cease local production, with Tnuva retaining ownership of the brand and importing the spreads for sale in Israel. Olivia, founded in 1990 by entrepreneur Yoel Banash, was a pioneer in the Israeli spreads market, specializing in products like olive tapenade and sun-dried tomato pesto. It was acquired by Kardan Holdings in 1996 and later became part of Tnuva in 2002 as part of the company's expansion into gourmet food.

The factory moved from Even Yehuda to Rehovot in 2005. Despite Olivia's strong brand recognition and quality reputation, the spreads category remains niche, generating only a few tens of millions of shekels annually. Competition has increased in recent years, notably from the company "Al HaLechem." The cost of importing the spreads is expected to be lower than local production costs. Olivia's operations represent a very small fraction of Tnuva's overall sales, which total around 8 billion shekels annually, mostly from dairy.

Tnuva's management reportedly decided to discontinue local production to focus on core business areas and improve efficiency. Employees affected by the closure will be offered alternative positions within other Tnuva facilities. This move follows several recent streamlining efforts by Tnuva, including exiting poultry operations, ending a partnership in turkey farming, and closing a joint venture for vegetable and food deliveries, reflecting a strategic focus on the company's main business sectors.