Tnuva CEO announces comprehensive corporate plan

  • Tnuva CEO announces comprehensive corporate plan
  • 03-04-2016

Tnuva announces a comprehensive organizational plan aimed at adapting the Group's structure to local market challenges and development of its activities in international markets

The key points of the plan:

  • Focusing activity on the domestic market based on two business divisions – the Dairy Division and the Food Division: Under the program, the Merchandise and Brands Complex will be consolidated into one division, and Logistics Divisions will be consolidated into the Corporate Supply Chain Division.
  • Establishing an International Division that will lead to the development of Tnuva’s activity in overseas markets that constitute one of the main growth engines for the coming years.
  • Establishing an Innovation Unit that will assimilate innovative processes in the Group and will be responsible for identifying innovative initiatives for integration in the Company’s activities.

Tnuva CEO Eyal Malis: "The new business structure will enable us to cope with the challenges facing us, while constantly searching for new growth engines in Israel and overseas.
These measures are significant; they are designed to ensure that Tnuva is an efficient, agile, and relevant company. I am confident that the foundations we are laying today will bring us value already in the short term."

Tnuva Group CEO, Eyal Malis, announced today, Wednesday, June 30, 2016, to the Managers’ Forum of the Group, the activation of a comprehensive organizational plan, aimed at adapting the Company’s structure to the changing reality in the food sector, and meeting the challenges facing Tnuva in the coming years, which is also facing international markets.The new structure ensures that Tnuva will be an efficient, agile, and relevant company, and continue to be the leading company in Israel.

The key points of the plan:

  • Focusing activity on the domestic market based on two business divisions – the Dairy Division and the Food Division: Under the program, the Merchandise and Brands Complex will be consolidated into one division, and Logistics Divisions will be consolidated into the Corporate Supply Chain Division.
  • As part of this, there will be a fundamental change in the activity of the Dairy Complex:
    • The Dairy Division, which will be responsible for the entire business line of Tnuva dairy products that constitutes the main activity of the Group in Israel.
      Anat Gross Shon will be appointed CEO of the Dairy Division and will report to the Group CEO. Gross Shon served for the last eight years as Manager of the Marketing and Business Division in the Dairy Complex.
    • The Logistics Division of the Dairy Complex will be merged with the Brands and Merchandise Supply Chain Division and will report to the Group CEO. The aim of this change is to generate optimization processes from a corporate perspective, giving service to the business lines, and enabling the units to work in full synchronization.
      The Division will be headed by Yaniv Kimchi who currently manages the Supply Chain Division of the Brands and Merchandise Complex.
    • The Operations Division of the Dairy Complex will also report to the Group CEO. The division will be responsible for all the dairy production plants in addition to Tnuva’s relationships with the dairy-farmers.
      The Division will be headed by Danny Peretz, until now Manager of the Tel Yosef Dairy.
      Eyal Malis noted in connection with of this change: "The new organizational structure of the Dairy Complex will facilitate focusing by Group Management on its main business line, speed up decision-making processes, and ensure their rapid execution."
  • The Merchandise Complex and the Brands Complex will be merged into the Food Division. This consolidation will enable a more efficient working structure that creates a synergy between the business units that are part of it.
    Eli Ben-Lulu was appointed CEO of the Division. Ben Lulu currently serves as Manager of the Brands Complex.
  • An International Division will be established aimed at development of overseas markets, which has been marked as one of the Group's key goals in the coming years, and as a significant growth engine.
    The Division will be headed by Guy Proper Guy, Vice President of Business Development at Tnuva.
    In connection with the International Division, Eyal Malis said: "There is no doubt that the acquisition of Tnuva by the Bright Food Corporation is expected to open up opportunities in international markets to the Company. The Bright Food Group has made substantial overseas acquisitions in recent years, and regards Tnuva as an important arm for carrying out this strategy."
  • Establishing an Innovation Unit, whose task will be to open up Tnuva to innovative initiatives outside the organization as well as to assimilate enterprise-wide innovation processes.
    The Unit will be headed by Yuval Tzeiri in addition to his role as Vice President of Information Systems.
Eyal Malis noted that: "As a leader in the Israeli food sector, we need to ensure our leadership role, adopt innovative methodologies, and grow the market. In order to implement innovative thinking, I see great importance in establishing an organic unit to find and promote innovations and assimilate them in the organization."

In addition, Malis announced that the Management of Tnuva is holding discussions for the purpose of devising a comprehensive streamlining plan in cooperation with the Chairman of the Workers’ Committee, Ahiav Simchi. This will include an assessment of a variety of activities in the various units of the Company as well as in the Group's headquarters, in order to adapt Tnuva to the challenges it faces.

Tnuva CEO Eyal Malis commented: "We are currently initiating an overall program initiated to help us focus on action, to give a quick and a higher quality response to our consumers, and to strengthen the foundations of the Company."

Malis added: "Tnuva is a company of people. This has been our strength for 90 years and will continue to be so. As a result of the change in the work method, we unfortunately must part with worthy colleagues and friends, and I find this personally painful. I personally wish to thank all the executives we are saying goodbye to today."

Malis also said: "The food market will reshape itself, and this requires Tnuva to take significant steps and to place alongside the cutting edge of technology, our dedicated workers, glorious heritage, our leadership and innovation – also as an efficient, agile, and relevant company, and continue to be the leading firm in Israel. Tnuva is committed to continue to develop its activities in the domestic market, striding together with Israeli agriculture and bringing to every home in Israel, the best of the favorite products with an emphasis on variety, freshness, healthfulness, and fair prices. We are committed to continue to serve faithfully, every single morning, our thousands of customers and our millions of consumers, and continue to be a home to the thousands of our loyal employees.”

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