Osem Investments Ltd. is one of the largest food manufacturers and distributors in Israel. It is majority owned by Nestlé S.A. of Switzerland. The group also exports its produce overseas through its subsidiaries in the UK and USA.
It was Osem behind the recent ruling by the Israeli Health Ministry to remove the condiment designation of Heinz ketchup because it doesn’t have enough “tomato solids.” It will now be sold as a tomato seasoning. The ruling still allows the word ketchup to be on the bottle in English, but it has to be labeled “tomato seasoning” in Hebrew, reports the Times of Israel.
The ruling came about because of a lobbying campaign by Osem, which produces a large portion of the ketchup consumed in Israel. The company was allowed to pull this stunt despite Israelis complaining about local monopolies distorting the economy by controlling prices of some food products, especially food producers.
back in January, Osem sent a letter to retailers, claiming they had tested Heinz ketchup in a “leading European laboratory,” and found the product contained 21 percent tomato concentrate instead of the 61 percent it advertised to consumers. According to Israeli trade standards, ketchup must have at least 41 percent tomato concentrate, reports Haaretz.
Diplomat, the local importer for Heinz, with the backing of the Health Ministry’s food division, is filing a petition to have the definition of ketchup changed. With the ministry’s backing, Diplomat wants the standard changed from 10 percent tomato solids to six percent.
The Histadrut labor federation’s consumer protection authority has stepped into the fray, objecting to Diplomat’s petition on the grounds that it is all about the children. The Histadrut wants to ensure that children are eating as much tomatos as possible when they eat ketchup.
