Sources inform “Globes” that Osem Investments (controlled by Nestle) (TASE: OSEM), which is interested in re-entering the chocolate snack market, will consider making an offer to acquire Unilever’s chocolate activity in Israel.
In an interview appearing today in “Globes” New Year supplement, Osem’s new CEO Gazi Kaplan said in response, “We do not rule out any acquisition that will serve our strategy. The question, essentially, is whether we should enter the chocolate snack business by way of imports or through an acquisition. I am not talking about chocolate bars as I will not make a profit on these even if I import quality chocolate.”
Unilever said in response, “We have a policy of not commenting on reports of this kind in the press, and in any case, we have no intention of selling our chocolate business.”
Recently, Osem acquired pastry products company Bonjour Bakeries for NIS 117 million. Asked about Osem’s future growth outside of Israel, given the barriers imposed by Nestle on its expansion, Kaplan said, “They have not placed barriers on us in the two places where they feel that we have an advantage: Tivall Vegetarian Food Products and salads. Even if I was receptive to global expansion, I don’t think I would be able to compete on the global culinary market. We want to build our growth in Israel and abroad on our centers of know-how and on the highest level of R&D in the food sector.”
Kaplan added that Osem has set itself extremely stringent profitability targets. “The Osem Group and Nestle have set themselves a very clear target: to reach a profitability rate of at least 12% and a very high rate of return on capital.”
Published by Globes [online], Israel business news - www.globes.co.il - on September 21, 2006
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