Strauss Group to Invest Over NIS 2 Billion in Israeli Operations
Translated & summarized from Ice by baba
The Strauss Group announced a new growth strategy for 2027-2030, focusing on local brands and innovation. The company will invest over 2 billion shekels in its Israeli operations, enhancing production and supply chains. Strauss also plans international expansion and aims for 3-5% annual quantitative growth and 7-9% net profit growth.
The story in 5 lines · by baba
- Strauss Group will invest over 2 billion shekels in its Israeli production and supply chain capabilities.
- The company's new strategy (2027-2030) focuses on growth through beloved local brands and innovation.
- Strauss aims for 3-5% average annual quantitative growth and 7-9% net profit growth.
- Investments will also target the health and well-being sector, including dairy and functional foods.
- The strategy includes international expansion in Brazil, Latin America, Poland, Romania, and Ukraine.
The Strauss Group unveiled its 2027-2030 strategic plan on Monday, focusing on growth through beloved local brands and groundbreaking innovation. The strategy, titled "Winning with Loved Local Brands," aims to leverage established brands and introduce new products tailored to consumer needs across Israel, Brazil, Latin America, Poland, Romania, and Ukraine.
In Israel, Strauss plans to invest over 2 billion shekels (approximately $540 million) in production capabilities and supply chain infrastructure. This investment will bolster core activities, particularly in the dairy sector and health and well-being segments, including functional food products and Strauss Water. The company also intends to expand its reach within specific communities and enhance operational efficiency.
Internationally, the group will focus on maintaining leadership and profitability in coffee in Brazil through its Três Corações joint venture, integrating the Yoki acquisition, and expanding its dry food portfolio. Strauss will also explore new categories and further expansion in Latin America, as well as strengthening its coffee operations and exploring new categories in Poland, Romania, and Ukraine, potentially through mergers and acquisitions.
The strategy anticipates an average annual quantitative growth of 3-5% and a net profit growth of 7-9% annually. Capital expenditures are projected to be 5-7% of revenues between 2027 and 2030. Shiy Ba'ad, President and CEO of the Strauss Group, stated that the company is entering this new phase with positive momentum, strong brands, and valuable partnerships, emphasizing continued investment in its Israeli facilities and expansion in other markets.
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