Tnuva Shuts Down Olivia Spread Production Plant After Decades in Israel

Tnuva has decided to close the Olivia production line, ending local manufacturing of the pioneering Israeli spread brand established in the 1990s. The plant, located within Tnuva's facility in Rehovot and employing about 20 workers, will cease operations within approximately two months. All employees will be offered alternative positions within Tnuva, with no layoffs expected. Although the Olivia logo remains owned by Tnuva, local production will stop, and existing inventory will keep the brand on shelves for several more months.

Olivia, known for products like olive tapenade and sun-dried tomato pesto, was founded in 1990 by entrepreneur Yoel Banash. It was acquired by Kardan Holdings in 1996 and then by Tnuva in 2002. The plant moved from Even Yehuda to Rehovot in 2005. Despite Olivia's recognition as a category pioneer, its annual sales of around 15 million shekels represent a small fraction of the estimated 50 million shekel spread market, which has seen limited growth and increased competition from brands like "Al HaLechem," Neto's Fresco, and Biton and Zahavi's ethnic spreads.

Tnuva cited the need for costly production line upgrades that were not justified by Olivia's minimal contribution to profits, especially compared to Tnuva's overall annual turnover of about 8 billion shekels, mostly from dairy products. The company may reintroduce Olivia products through imports or repurpose the brand for other food categories in the future.

This closure is part of Tnuva's broader efficiency measures amid plans for a stock market listing. In recent years, Tnuva exited poultry farming and slaughtering in 2020 and ended egg marketing and distribution in 2024 after nearly a century, due to price controls and private label competition. Concurrently, Tnuva has invested heavily in new sectors, including converting the Soy Magic plant to produce dairy alternatives under the Alternative brand.