Strauss seeks NIS 300-400m savings in new strategic plan

• Published date: 27 March 2024
• Author: Hezi Sternlicht and Shira Sapir
• Publication title: Globes (Rishon LeZion, Israel)

The group will distribute a dividend of NIS 270 million. The compensation cost of president and CEO Shai Babad was NIS 8.2 million last year, including NIS 4.9 million in stock-based compensation. The compensation cost of chairperson Ofra Strauss was NIS 2.8 million

Strauss Group's market share in the confectionery segment contains to strengthen, reaching 25.4% in the fourth quarter. The company has still not restored the market share it had before the recall of products in 2022 following the discovery of salmonella at its Nof Hagalil factory, but this is partly because it decided not to resume production of its entire product portfolio.

Following the streamlining program announced in 2022, in which the group was restructured, an updated strategic plan has been approved, under which activities with low profit margins will be closed, and investments will be made in Israel, among other things in the plant-based products factory north of Ahihud, due to open next year at an investment of NIS 250 million. 5-7% of sales turnover will be devoted to capital expenditure.

In the water segment, the company is examining entering other markets besides Israel, the UK and China, where it currently operates, and in the coffee segment it will focus on mergers and acquisitions in Brazil and in expanding the proportion of revenue from activity other than roast and ground coffee.

Strauss identifies effects of the war on consumer trends. In response to price hikes, including by Strauss, which raised prices in January for the fourth time in fourteen months, consumers are buying less. At the same time, there is demand for products considered "treats" that provide some kind of emotional compensation.

Another trend that the...