Tnuva Exits Spread Market, Shuts Olivia Production Line Amid Efficiency Drive

Tnuva, Israel's leading food conglomerate, is continuing its efficiency measures by closing its spread production line under the Olivia brand at its Rehovot dairy facility. The company plans to exit the spreads category entirely due to limited scale and lack of significant growth, with annual sales estimated at around 50 million shekels. The production line is expected to close within about two months, with existing inventory allowing the brand to remain on shelves for several more months.

This decision comes roughly two decades after Tnuva acquired Olivia and follows an assessment that the small-scale operation, generating approximately 15 million shekels annually from a variety of spreads such as olive tapenade, sun-dried tomato, and pesto, does not justify further investment. Following the exit, the spreads market will continue to be led by the Al HaLechem brand, alongside Neto's Fresco and Biton and Zahavi brands specializing in ethnic spreads like schug, harissa, preserved lemon, and horseradish.

Tnuva has offered the 20 Olivia employees positions within the group in similar roles, avoiding layoffs. The company will retain the Olivia brand, keeping open the option to re-enter the category in the future through imports or repurpose the brand for other food products.

This move is part of a broader strategy by Tnuva, which is preparing for an initial public offering and has recently divested from non-core and unprofitable activities. In 2024, Tnuva ended its egg marketing and distribution business after nearly 90 years due to regulatory challenges and competition from private labels. Four years earlier, it exited poultry farming, slaughtering, and distribution by selling its 50% stake in the "A-T" group to partner Granot. Concurrently, Tnuva has invested hundreds of millions of shekels in the dairy alternatives market, converting the Soy Magic plant under the Alternative brand to focus on chilled milk substitutes.