Nestlé-owned Osem Group has opened a new CHF 55 million ($54.9 million) factory in Kiryat Gat, Israel, to support the growth of its Bamba brand.
Bamba is a peanut and corn snack that is popular in Israel, and this investment will enable Osem to double production volume to about one million bags of Bamba per day, and later on to about 1.5 million bags.
The 16,000 square-metre facility will employ about 150 workers, and during the year, a new visitor centre will be opened next to the factory.
Osem introduced the Bamba brand to the US market in 2018, and the company says that the new plant will help drive the international growth of the brand.
Osem Group CEO Avi Ben-Assayag said: “Our dream is to see Bamba in every supermarket in the US and Europe. Thanks to the factory we are inaugurating today, we will be able to double production capacity and provide for demand in Israel and the increasing demand for Bamba in the US.
“This is the most innovative food factory in Israel, with one of the most advanced quality control systems in the world and a closed and automated production system.
“The way in which Nestlé has guided the process of planning and building the factory, and their significant investment in it, show the extent of the huge commitment of Osem and Nestle, and the immense trust Nestlé has placed in Osem as a company that excels at innovation.
“This path ensures the continued development of Israeli manufacturing and Osem’s position as one of Nestlé’s leading worldwide organisations.”
Nestlé first acquired shares in Osem in the 1990s, and fully acquired Osem Group in 2016 after paying $840.5 million to acquire the remaining 36.2% stake in the company that it did not previously control.
© FoodBev Media Ltd 2019