Osem is examining the possibility of altering its management structure, adopting a divisional structure similar to Nestle’s, in preparation for Nestle’s increased activity in the company.
Sources close to the company stated, senior officials fear the results of the reorganization, as officeholders could be replaced in the process, and certain functions could become unnecessary in the system. It has also been learned, Osem will hire an international consulting firm to conduct a study and recommend the necessary structural changes.
The intention is to separate the marketing activity of Osem brand names from Nestle’s international trademarks, creating a division between Nestle Israel and Osem. Reportedly, it is planned to bring someone in to manage Nestle Israel, who will operate across from the regional Nestle manager.
According to the idea being drafted, the structure will be divided according to areas of activity, coffee, cereals, soups, chocolate and so on.
Due to Nestle's takeover of Osem, the problematic nature of managing Nestle’s product lines has worsened, as some represent overlapping products to Osem’s local brand names. Nestle is interested in pushing new brand names into the Israeli market, and the current system has difficulties in handling both product lines.
Osem did not comment on the report.