Pigeon Wings and the Butterfly Effect: Strauss Salmonella and Our Retirement - Walla! Of money

2022-04-29T06:47:57.873Z

There are those who rejoice in the person of the rich who took a hit in the pocket, without realizing that in such crises, the only pocket that is damaged is that of the public

Pigeon Wings and the Butterfly Effect: Strauss Salmonella and Our Retirement

Strauss was quick to take responsibility.

The guilt and personal conclusions will wait until the crisis passes, because now everyone needs to remain mobilized and committed.

Meanwhile, there are those who rejoice at the plight of the rich who have taken a hit in the pocket, without realizing that in such crises, the only pocket affected is that of the public

Liat Ron

29/04/2022

Friday, 29 April 2022, 08:48 Updated: 09:36

Share on Facebook
Share on WhatsApp
Share on Twitter
Share on Email
Share on general
Comments
Comments

In the video: Ofra Strauss apologizes to customers for the salmonella malfunction in the chocolate factory (Photo: Yotam Ronen)

If you were sure that the Strauss crisis was affecting our stomachs, think again.

Usually abdominal pain passes after a few days, with or without treatment, but when Strauss stock plummets, it takes a long time for it to recover.

And along the way we are all hurt.

Some Walla surfers who watched the press conference convened by Strauss were happy for the rich who were hit in the wallet.

Among the talkbacks were quite a few who rejoiced in the downfall of husband and chairman Strauss and company executives, but this is the place to explain, the close connection between the light blow they took, and a hole that opened in the pocket of us all, following the biggest recall in the country's history. The "rich" with or without quotes, knocked, but again, we.

The shares of Strauss, the largest food company in Israel, which includes, among others, Strauss Israel, Strauss Coffee, the international Sabra and Obla salad companies, and Strauss Water, are traded on the Israeli stock exchange at a value of just under NIS 9 billion.

By the way, yesterday, at the height of the crisis, it rose by about half a percent - apparently the institutionalists think that the peak of the crisis has already passed.

In general, institutional investors love Strauss: because it is an established company, which controls almost every category in which it is located, the managers of pension funds, study programs and provident funds, consider it an attractive and solid stock and choose to invest our savings in it.

When the crisis broke out and the stock went down, we had less money left that we would need a lot when we retire or, God forbid, we would need it in a time of need.

So true, Strauss's revenue will hurt several hundred million, but the real impact on Ofra Strauss, the owner and chairman of the board, will not be felt, while Nehama from Metula, who is sure her only connection to the company is Elite Chocolate she buys for kids occasionally, may be a little less Money to buy chocolate for grandchildren in her old age.

Good to know (promoted)

Defeat the pain without fear: B-Cure laser in an unprecedented trial operation

Served on behalf of Bee Cure Laser

Collecting Strauss-Elite products from the shelves.

The people responsible for the crisis are also the ones responsible for success, Strauss explains (Photo: Reuven Castro)

The princes of the tides

The issue arose following a question asked by Walla at the press conference about the degree of responsibility of senior executives at the company for the crisis, since it erupted in their shift, and therefore: Will there also be personal conclusions about company officials,

Ofra Strauss replied that there was no intention to fire anyone and also had a good reason: those involved in the processes that led to the recall - from the same renovation that was not conducted according to the required sanitary standards, through the pigeons that moved to the factory, and worst of all: Lou Strauss - are the same people who led to the success of the company and the increase in the value of its shares.

In the end, here too - everything is people.

From the right: President and CEO of the group, Giora Bar-De'a, Chairman Ofra Strauss and CEO of Strauss Israel, Eyal Dror (Photo: Flash 90, Avshalom Sasson)

Backup now, accounts later

The health crisis of the discovery of salmonella in liquid chocolate, moved very quickly to the business level, when the plant in the Galilee landscape was closed by the company, the product list was extended to other sweets and Strauss' quality standard was revoked for three months by the Ministry of Health. The company's management tried to stop last night.

Walla learned that in contrast to the lip candy that characterized the show to the media, behind the scenes harsh things were also said.

At one of the emergency meetings held after the discovery of the salmonella-infected specimens, the chairman demanded to know how the crisis was handled in such a negligent manner.

The person in charge of the management is Giora Bar De'a, one of the most experienced, veteran and esteemed people in the food market.

He started working at Elite in 1996 as sales and logistics manager, led the merger between Strauss and Elite and in 2018, after Gadi retired from China, was appointed president and CEO of Strauss Group. Israel, was sent to stand in the front, which received harsh criticism.

It should be noted that Strauss vehemently denied the above information, but even if it is important for them now to present a unified front where everyone backs everyone - the shareholders the group president and he the CEO and so on, as there is urgent damage that needs to be repaired in record time - The personal account.

We have already learned how things work in large public companies: at the end of every crisis, a Rolex watch with a personal dedication plus warm words about its work awaits one of the managers.

That way everyone looks better.

Our bet: Strauss will also be handed out compliments until the stage of personal conclusions is reached, now everyone needs to be committed and preferably also smiling.

When stock market screens turn red, we all lose money - even those who seem to have never bought a share in their day (Photo: Reuven Castro)

From crisis to morak

By the way, it is not at all certain that Strauss will be harmed in the long run: the company is strong enough to survive the current crisis, sweets make up about 30% of its activity, which is a lot, but most of the work is in other segments. At first, but in the end the numbers straighten and get better and the crisis becomes folklore: a bit like remembering the distance of the years in the MK that left you a Saturday in training - something that at the time looked like the end of the world and over time became a battle legacy

. Of the liquid chocolate has become a flutter of the (butterfly) effect: the salmonella has reached the stock market, where we hold Strauss shares through our pension funds.

Of money
Opinions